Alphabet, the parent company of Google, said in its second-quarter earnings report on Wednesday that YouTube is still leading the streaming industry and that its ad revenue has increased by 13% year over year. Due to this increase, YouTube’s overall ad revenue increased from $8.7 billion to $9.8 billion at the same time the previous year, according to Alphabet’s earnings report, which was made public on July 23, 2025.
The business somewhat above analyst projections, which estimated YouTube’s Q2 ad revenue at approximately $9.6 billion.
YouTube has been working for years to increase its proportion of television ad revenue, particularly since its popularity in TV has increased and it now accounts for a sizable amount of its audience. According to a recent Nielsen estimate, YouTube accounted for 12.4% of all audience time spent watching television, holding the top spot for three months in a row. Among its rivals, this is the largest share.
Rival streaming services like HBO Max and Amazon Prime Video have increased their ad placements in an effort to spur development in response to YouTube’s popularity. Furthermore, Netflix is becoming a significant rival of YouTube, especially after the company’s earnings call last week revealed that it plans to double its advertising revenue within the year. Netflix has not made its ad revenue numbers public, but according to a Madison & Wall analyst, it is approximately $3 billion.
With total revenue of $96.4 billion in the second quarter, a 13% rise from the previous year, Alphabet announced good overall results.
“We experienced a remarkable quarter, with strong company-wide growth. At an amazing rate, we are at the forefront of both shipping and artificial intelligence. AI is having a good effect on every aspect of the company and is accelerating its growth. Alphabet CEO Sundar Pichai said in a statement, “Search generated double-digit revenue growth, and our new features, like AI Overviews and AI Mode, are performing well.” “Both YouTube’s performance and subscription packages remain robust. Additionally, Cloud’s revenue, backlog, and profitability all saw significant growth. It currently generates over $50 billion in income annually. We are thrilled about the potential ahead and are raising our investment in capital expenditures in 2025 to around $85 billion because of the robust and expanding demand for our Cloud products and services.
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