YouTube remains the leader in the streaming market, with advertising revenue rising 13% year over year, according to Alphabet’s second-quarter earnings report released on Wednesday.
The company slightly exceeded analyst expectations, which had forecast YouTube’s Q2 ad revenue to be around $9.6 billion.
YouTube’s Growing Dominance in TV Viewing
For years, YouTube has been striving to capture a larger share of television ad dollars, especially as its popularity in TV has grown, accounting for a significant portion of its viewership. A recent report from Nielsen indicated that YouTube held the largest share of TV viewing for three consecutive months, representing 12.4% of the total audience time spent watching television.
Competitive Pressure from Other Streaming Platforms
In response to YouTube’s success, rival streaming services—such as HBO Max and Amazon Prime Video—have ramped up their advertising strategies, increasing ad placements to stimulate growth. Additionally, Netflix is emerging as a key competitor, particularly after it announced plans to double its advertising revenue within the year during the company’s recent earnings call.
Although Netflix has not publicly disclosed its ad revenue figures, an analyst from Madison & Wall estimates that it’s around $3 billion.
Alphabet’s Strong Financial Performance
Overall, Alphabet reported strong results, with total revenue of $96.4 billion in the second quarter, representing a 13% year-over-year increase.
