Advertising revenue generated specifically by YouTube
has tripled on mobile devices, including smartphones and tablets -- giving nearly $350 million to parent company Google's coffers. According to the search engine, about 250 million global users view content on handheld devices, forcing a shift in ad purchases to reach that audience.
US mobile video ad revenue is expected to grow to $2.69 billion annually by 2017, 10 times more than was seen in 2012. "The commercial business has exploded," Vice President of YouTube Sales Lucas Watson said in an interview. "It's a huge part of our business, and we know that's where it's headed." Estimates place YouTube revenue at 10 percent of Google's total income.
According to studies and traffic analysis, more than half of US smartphone users in the US accessed YouTube by app in March. The number of hits through the app is up 42 percent from a year ago. Google claims the numbers have increased due to the replacement of Apple's YouTube app on the iPhone and iPad with the Google-provided app. The previous Apple-made version of the app excluded advertisements, while the Google-made one allows them.
"YouTube as a video platform is a definitely a key one for our products," Social Marketing and Media Manager at Electronic Arts Christine De Martini said. "I would anticipate as mobile consumption continues to grow, we'll have to find ways to make sure that we reach our audiences on whatever platforms they're on."