YouTube exceeds Q1 forecast as Ad sales rise by 21%
By Oluwaseyi Lawal
YouTube has exceeded expectations in advertising revenue during the first quarter of 2024, soaring by an impressive 21% to reach $8.1 billion and surpassing analysts’ projections of $7.7 billion for the year on year period.
Michael Nathanson, co-founder and media analyst of MoffettNathanson Research said, “Watch time growth and a shift in brand advertising budgets from linear TV to YouTube continues to boost YouTube on CTV.”
He further stated that YouTube Shorts has continues to to experience sharp growth and “monetization rate of shorts relative to in-stream viewing has doubled in the past 12 months.”
The advertising revenue reported for YouTube, a subsidiary of Alphabet, excludes revenue generated from YouTube TV, the virtual pay TV service, and YouTube Premium. In the preceding fourth quarter of 2023, YouTube achieved its highest-ever advertising revenue of $9.2 billion, marking a 16% increase from the previous year.
In the latest March estimates by Nielsen for total day TV and streaming viewership among individuals aged 2 and above, YouTube captured a 9.7% share of TV usage, marking the highest share among streaming platforms and an increase from 7.8% the previous year.
YouTube saw a 0.4 percentage point rise from February. Following YouTube, Netflix held the next position with 8.1%, trailed by Hulu at 3.0%, and Amazon Prime Video at 2.8%.
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