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YouTube mobile advertising sales triple in 6 months

9 June 2013

YouTube has tripled advertising sales on mobile devices in the past six months, according to Bloomberg. The company has said that the additional revenue has contributed an estimated $350 million to the video-sharing website.

When you crunch the numbers, it seems that out of the one billion YouTube users, about a quarter now use YouTube through handheld devices. This has, in turn, increased the amount of money being spent on promotions to get the attention of that audience, according to Lucas Watson, the Vice President of Sales at YouTube. 

The increase in YouTube’s mobile video-advertisement sales has shown for the first time that the company is making progress in getting marketing dollars in a market that has strong presence of other video-streaming websites like Hulu.

Overall, faster wireless networks and the increased use of smartphones and tablets have shown that there are more people and hence, more potential users for video-ads. According to eMarketerthe US mobile video-ad sales are estimated to grow more than 10-fold from last year, and will rise to around $2.69 billion by the year 2017. 

According to Nielsen Holdings, more than half of the smartphone users in the US used their YouTube app in March. This comes to about 70 million people, which is higher than the 42 percent of smartphone users who were seen using the same app last year. 

The challenge for mobile-ads is holding on to consumers, though. YouTube, which can be downloaded from any App Store and is playable on any Android OS based device, integrates commercials by showing them before a video starts playing. 

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Access Control Systems using Power over Ethernet (PoE) Technology from Borer