We like to give as much space as posÂsiÂble to up-and-comÂing firms on these pages; but every now and then, one of Adland’s Goliaths genÂerÂates news that just can’t be ignored. Like YouTube, for instance: its VP of Sales, Lucas WatÂson, has just announced that mobile adverÂtisÂing revÂenues at the video-sharÂing site have tripled in the last six months alone.
ProÂmoÂtionÂal spendÂing has been chanÂneled into mobile as nevÂer before to keep up with the burÂgeonÂing uptake of hand-held devices amongst YouTube’s 1 bilÂlion globÂal visÂiÂtors: around a quarÂter of them now use mobile gadÂgets to access the site, WatÂson revealed.
A burÂgeonÂing market
No one workÂing in mobile adverÂtisÂing will be surÂprised at this: eMarÂketer Inc. recentÂly proÂjectÂed U.S. mobile video-ad sales to rise to $2.69bn by 2017, a 10-fold expanÂsion on 2012 driÂven by faster wireÂless conÂnecÂtions and the expoÂnenÂtial uptake of smartÂphones and tablets.
While WatÂson was a litÂtle cagey about speÂcifÂic figÂures, Wedge PartÂners Corp. anaÂlyst MarÂtin PykkoÂnen estiÂmates that YouTube accounts for 10 per cent of Google’s total revÂenue. CrunchÂing the numÂbers furÂther, he figÂures that mobile adverÂtisÂing sales conÂtributed to around 20 to 25 per cent of YouTube’s total revÂenue for Q2 2013. With Google’s overÂall sales totalÂing $14bn for the quarÂter, that works out as $350m in sales comÂing from mobile video ads.
Research from Nielsen HoldÂings NV shows that 70 milÂlion U.S. mobile users were on YouTube’s app in March this year, a rise of 42 per cent on the same time last year. That takes the total to over half of US smartÂphone users.
App shift
With the app feaÂtured on all Android OS devices and a new (and immenseÂly popÂuÂlar) standÂalone app availÂable as a downÂload from Apple’s App Store, it’s litÂtle wonÂder that mobile sales are soarÂing. After Apple Inc.’s deciÂsion to drop YouTube as a core app in the iOS last year, downÂloads of the standÂalone app have skyrocketed.
New data for May 2013 from anaÂlytÂics firm DisÂtiÂmo shows that the YouTube app is the most popÂuÂlar non-gamÂing app on iOS by far, and Apple’s own stats reveal it to be the fourth most popÂuÂlar app ever durÂing the same month.
Not bad for a prodÂuct that’s only been availÂable for eight months. No wonÂder its mobile revÂenues are blastÂing through the stratosphere.