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LATEST NEWS

  • Matthew Spencer - Tech Journalist

YouTube Ad revenue hit $8.6 billion in Q4: Google Search hits $43.3 billion


The worlds largest video sharing platform YouTube exceeded all expectations with its ad revenue in Q4. The profit margin jumped 25.4 per cent higher year over year, making the company $8.63 billion.



Ad revenue makes up for most of the income for the search engine giant Google and the biggest video sharing platform, YouTube. Both under the same parent company Alphabet Inc. from top to bottom, Alphabet Inc. is beating other companies in revenue margin. Alphabets stocks popped 6 per cent higher after the initial reveal of revenue.


Even though Wall Street gave their forecast, YouTube took the crown from Netflix as they received $7.71 billion in Q4. Netflix’s revenue from last year Q4 is now up by 16 per cent, whereas YouTube is up by 25.4 per cent. Where a single percentage can put up billions, the revenue margin may seem quite similar, but beating by a whole billion is quite impressive. We don’t expect YouTube to give up its crown on ad revenue in the video-sharing category as the platform has been up for many years. Alphabet now sets a 20-for-1 stock split for July 2022.


The high revenue margin doesn’t even include its premier membership in YouTube Music and Premium subscribers. If we could consider that, a few more billions stack up. On this comparison, Netflix’s revenue margin is from paid customers as they only have paid options to view content. On the other hand, the business sector targets specific viewers through search engines like Google and YouTube.


Q4 2021 quarterly revenue with Google-owned platform leading the way with massive chunk in bank shows how much businesses are dependent on online advertisement. The revenue margin popped with new algorithms that give target-based ads to people.


YouTube’s 2021 fiscal revenue is $28.8 billion just from advertising revenue. Year over year, q4 earning for YouTube was $6.9 billion, which was also its most significant quarterly revenue. In 2021 Q4, Netflix made $7.7 billion, and y-y making on Q4 was $6.6 billion, a slight decline.


Alphabet Inc. parent company reported a total of $75.3 billion in revenue in Q4, which is about $257.6 billion for the year. In summary, Alphabet Inc. single-handedly beat the Wall Street earning prediction for the year-end quarter. According to Alphabet, the stock owners will receive additional 19 shares of the same class they are already holding after the close of business on July 15, 2022.


According to YouTube CEO Susan Wojcicki, the platform received more than 5 trillion views in YouTube Shorts, the small clips in YouTube. It is a popular video format directly coming from TikTok. Many creators started different channels to publish short videos as they seem to be a great addition to the trend.


CEO dint give specific but mentioned their platform is looking for ways to make more money from NFT’s (non-fungible tokens) directly from the site. Even though NFT’s are underrated now, these large tech companies push barriers and quickly bring in what’s next. Similarly, we saw Twitter implementing NFT profile showcase options, and many creators started opening discussing ways to make money via NFT. It can be a significant sector, and YouTube might utilise full benefit by leveraging its potential.


In 2020, Alphabet had 135,301 employees to maintain its infrastructure, which grew by 16 per cent to about 156,500 employees in 2021. 2022 is still young, and many opportunities may come. In the meantime, the company will bag all the cash from ad revenues and subscription options.


Microsoft and Apple also showed a solid earning portfolio in Q4. We will discuss some of them in the following stories. Till then, Sundar Pichai stated about their deep investment in AI technology, which continues to drive extraordinary and helpful experiences for people and businesses.

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