YouTube Is Doing Great With Fewer People Skipping Ads, Google Says

Earnings affected by video shift

Google says YouTube ads are responsible for the company's lower recent ad pricing, and the mobile transition is no longer the drag it once was. Google reported earnings today, and it focused on YouTube's impact on the business.

Google touted YouTube's ad growth, with more brands running campaigns and more people viewing ads instead of skipping them.

Google executives said that higher-quality creative led to more views, which helped increase paid clicks—basically, the number of ads served—25 percent over the same time last year.

Also, click prices for advertisers were down 13 percent. In past quarters, that trend was blamed on the rise in mobile consumption making ads less valuable. But Google now attributes the decline in average click pricing to an increase in YouTube advertising—rates can be lower because the marketing is different than it is on search.

YouTube Trueview ads, those skippable ads, monetize at lower rates, Google said today.

Google also emphasized that YouTube is starting to contribute to the overall company, although it doesn't break out the video site's revenue. The number of YouTube advertisers, however, did rise 45 percent last year, Google said.

As for mobile advertising, Google has made strides refining the search experience on smartphones. The company said its mobile search business is getting stronger, and that search as a whole saw higher click pricing.

In all, Google's ad revenue last quarter was 11 percent higher than it was last year, hitting $15.5 billion.