Google is generating considerable revenue through ads, and recently the parent company of Google — Alphabet — released it’s earning to $46.1 billion for the last quarter of 2019. For the first time, Google revealed how much it was making money only from YouTube.
According to the financial report of the fourth quarter and fiscal year, in the last two years, YouTube has seen an increase of 86% in revenue in contrast to 40% growth of business ads over the past two years.
The disclosure of the shocking revenue growth has highlighted how quick YouTube’s ad business has evolved. It has almost doubled in the past two years. In 2017, the revenue generated from ads was $8.1 billion, and in 2018 it was $11.1 billion.
YouTube provides 10% of the total revenue
In 2019, YouTube generated revenue of $15.15 billion only from the ads. In a nutshell, YouTube ads have provided 10% of the total revenue generated by Google in 2019. Still, it does not account for the other source of money-making by YouTube like subscriptions and other non-ad sources, which according to an expert, accounts for another $3 billion.
Alphabet CEO, Sundar Pichai, has highlighted the Youtube revenue by giving his statement: “I’m really pleased with our continued progress in Search and in building two of our newer growth areas — YouTube, already at $15 billion in annual ad revenue, and Cloud, which is now on a $10 billion revenue run rate.”
YouTube overall has more than 20 million subscribers on its Premium accounts as well as on YouTube Music. Rest, it has 2 million subscribers on its overall TV channels.
Where did Google Cloud and Hardware stand?
Besides YouTube, Cloud is another area where Google is booming. Google Cloud business has grown double in the last two years as well. This is also the first time Google has reported its revenue from Cloud business. However, compared to its cloud business rival Amazin, $10 billion is the size of Amazon’s cloud business about five years ago.
Google has not provided details on the earning from the hardware it sells like Pixel smartphones or Google Home. Instead, they are part of the ‘other’ category. Regarding the ‘other’ category, we are not sure how Google calculates it and how it divides because it also includes earnings from Google Play and other services. But in this quarter, the total revenue for the ‘others’ was $5.3 billion, which is 10% more from the previous year. Overall the ‘other’ category seen a jump from $11 billion in 2017 to $17 billion in 2019. We have a hint here that the hardware division is making pretty impressive as well.
Along with a lot of money, Google is also facing an antitrust investigation from nearly every US state. Google has to police any unsavory content and the video platform to detect any disinformation. But so like YouTube, Google’s core search ad business is still outperforming.
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