About a quarter of YouTube’s 1 billion global users now access the service via handheld devices, Lucas Watson, VP/Sales at YouTube, told Bloomberg: “The commercial business has exploded. It’s a huge part of our business, and we know that’s where it’s headed.”
YouTube’s app streams commercials before a selected video starts playing.
The growth means YouTube is making headway in efforts to attract marketing dollars and challenge rivals such as Hulu. With faster wireless networks and accelerating adoption of smartphones and tablets, US mobile video-ad sales are projected to expand to $2.69 billion in 2017, increasing more than 10-fold from last year, per eMarketer.
YouTube generates about 10% of Google’s total revenue, according to the story. Based on Google’s $14 billion in sales in the latest quarter, and an estimate that mobile contributed 20% to 25% to YouTube, as much as $350 million in sales probably came from mobile video ads.
More than half of smartphone users in the US accessed YouTube’s app in March, according to Nielsen. At least 70 million people in the US used the app in March, up 42% from a year earlier.