In Google's second quarter earnings report today, the tech giant revealed that YouTube viewership is growing faster than it has in two years, and advertiser money is following.
YouTube's mobile users averaged 40 minutes per session during Q2, which represents a 50 percent increase year over year while ultimately helping the Mountain View, Calif.-based player beat Wall Street expectations. The number of advertisers rose 40 percent year over year on the video platform, while the average spend of YouTube's top 100 advertisers rose 60 percent.
Google generated $17.3 billion last quarter with a $3.9 billion profit, leading to a $60-plus after-hours jump in the company's stock price, which stood at $642 at press time.
"Our strong Q2 results reflect continued growth across the breadth of our products, most notably core search, where mobile stood out, as well as YouTube and programmatic advertising," said new CFO Ruth Porat in the earnings release. "We are focused every day on developing big, new opportunities across a wide range of businesses. We will do so with great care regarding resource allocation."
The company's search, display, video and programmatic advertising helped increase revenue by 13 percent to $12.4 billion on Google-owned sites. Paid clicks on Google sites were up 30 percent, but the cost per clicks was down 16 percent.
Google does not break out how much revenue YouTube generates, but executives were clearly satisfied with the performance.
There are more 18- to-49-year-olds on YouTube than there are consumers who watch cable TV, Porat said. "Advertisers want to reach these audiences, and our focus is on the opportunity to get larger budgets moved to YouTube," she said in a call with analysts today.
Here are a few other year-over-year stats that Google shared about YouTube:
- YouTube has more than 1 billion users.
- The number of users who visited the site directly via its homepage tripled compared to last year.
- The number of YouTube stars—like Michelle Phan or Grace Helbig—earning six figures was up 50 percent.