As consumers of video content come to increasingly rely on their smartphones as the device of choice, YouTube has seen its revenue from mobile advertising sales alone triple in the last 6 months. Considering the fact that there has been a 74% increase in time spent watching YouTube via a smartphone from Generation C users, it's no surprise that brands and agencies are focusing on mobile advertising to reach their target demographic. And although Gen C is one of the most active viewer groups, approximately one quarter of YouTube viewers - about 250 million of us - now access their video content via their smartphones, which means that mobile ad revenues will continue to rise. In fact, mobile video advertising sales are projected to hit $2.69 billion in 2017 in the U.S. alone.
How The iOS Standalone YouTube App Secured Extra Revenue
A YouTube representative recently confirmed that the new standalone app for iOS has been a huge contributory factor in driving mobile ad revenue. Since its release in September 2012, it has consistently been the best performing non gaming related app on iOS. With the old native app, Google (and therefore YouTube) were prevented from showing ads as part of a deal with Apple, but with these restrictions now lifted, YouTube is estimated to have benefited to the tune of $350 Million. Around 70 million users in the US accessed the app in March 2013.
YouTube And Advertising Revenue
YouTube advertising generates approximately 10% of Google's total income, and it is estimated that mobile ads contribute around 20% to 25% of YouTube's overall sales. With its TrueView ad delivery system, YouTube splits advertiser airtime evenly between the desktop and mobile versions of its site. Lucas Watson, VP of Sales at YouTube told Bloomberg that:
"The commercial business has exploded. It's a huge part of our business, and we know that's where it's headed."
Smartphone, Second Screen Engagement Rising
It's no wonder that sales from mobile ads are on the increase with 56% of adults in America now own smartphones (up from 35% in May 2011) and 96% of internet users across 8 countries have used a second screen device such as a smartphone or tablet whilst watching another form of entertainment, according to PR firm Edelmen. Around 60% of those surveyed confirmed that they had used their smartphone or tablet to buy merchandise while watching that other content. Some of the highlights of the survey include:
* At least 35% of users have watched or listened to content that wasn't in their native language in the past year (can't help but wonder how much Psy contributed to this trend......)
* 75% of users in 'emerging markets' interact in real time with what they are watching
* 76% are inclined to share information about entertainment