YouTube's advertising revenue is expected to increase by more than 50% in 2013, reaching $5.6 billion, confirming the threat that the Internet poses to "traditional" television advertising.
According to eMarketer, YouTube is now so attractive to advertisers that it accounts for 11% of all advertising revenue for owner Google. eMarketer's forecast surpasses previous estimates from Morgan Stanley ($4 billion) and Barclays ($3.6 billion).
While Google has not disclosed details about YouTube's revenue, eMarketer research suggests that buying the service for $1.65 billion in 2006 was a huge deal. However, YouTube doesn't keep all of the advertising revenue, as some goes to partners and content creators/providers. Net revenue, after these payments, is expected to reach $1.96 billion.
For the coming years, according to the report, even greater revenue growth is expected. In contrast, television, which maintains the "lion's share" worldwide, is forecast to see moderate growth over the next three years.
According to Google's statistics for YouTube, the service attracts one billion people each month, who watch a total of over six billion hours of video, with 80% of traffic coming from outside the US and 40% of total viewing occurring on mobile devices.
Source: naftemporiki.gr
