Google Inc (GOOG): YouTube ad revenue forecasted to hit $5.6 billion for 2013
Google Inc (NASDAQ:GOOG) video subsidiary, YouTube.com, is expected to hit $5.6 billion in gross ad revenue for 2013, according to research company eMarketer. This is up from $3.7 billion in 2012. Based on this amount, YouTube’s revenue would equate to 11% of Google’s total ad revenues.
This figure does not include money that YouTube passes to advertising partners and content creators. Google will keep 35% of the total, which is around $1.96 billion. After string revenues, YouTube will take $850 million this year from video ads that are served in the U.S., up 50% from last year.
YouTube will net $1.08 billion this year in U.S. ad revenues including display ads. This is 6.3% of all of Google’s net U.S. ad revenues for the year and 20.5% of the $4.15 billion U.S. online video ad market.
“Growth in impressions and viewership, particularly across devices, is probably the major growth driver [behind YouTube’s ad revenues],” stated eMarketer VP-communications Clark Fredricksen.
One of the driving forces of YouTube’s video ads are the TrueView video ads where users can skip the ads after 5 seconds. Advertisers only have to pay if someone watches at least 30 seconds or the whole ad if shorter than 30 seconds.
eMarketer revenues hundreds of data points, ad impressions, rates, usage, and other factors.