According to an analysis performed by eMarketer, YouTube will make $5.6 billion in gross ad revenue in 2013. Of that figure, YouTube will see $1.96 billion in net ad revenue globally this year.
Net ad revenues for YouTube in the US will be just over $1 billion, which represents about 6.3 percent of Google’s 2013 US net ad revenue according to eMarketer.
Video is particularly well suited as a brand advertising vehicle in mobile and that will likely be a big area of growth for YouTube’s video revenue going forward. However some of YouTube’s revenue comes from display advertising.
eMarketer argues that “$850 million in YouTube’s US ad revenues [of $1 billion] will come from video ads,” which gives Google a roughly 20 percent share of ” the overall $4.15 billion US video ad market.”
The graphic above reflects projected US YouTube net revenue growth through 2015.
For years financial analysts were asking, “When is Google going to make money on YouTube?” It’s clear that discussion is behind us. Now the question is how much can it make and what are the margins going to be?