For those in search of good news related to the financial health of the online video industry , a comment from Google’s Chief Product Officer Omid Kordestani during the company’s Q2 earnings call is a positive bellwether. Kordestani said that as a result of YouTube’s “BrandCast” event, held at the recent 2015 TV yearly upfronts, advertisers running video ads on the platform are up 40% year-on-year, and average spend per advertiser among its top 100 customers is up 60% year-on-year.”
While not specifically calling out YouTube’s contribution to Google’s Q2 earnings, Kordestani and other Google brass also spelled out how its online video powerhouse is changing the way consumers watch television.
Company executives said YouTube is shaping the way audiences — particularly millennials — go about their TV viewing. Kordestani, said YouTube is more powerful with the 18–49 audience than any cable network in the U.S. He went on to say that YouTube has become the touchstone for young viewers the way network television was in past decades.
During the call, Kordestani stated that YouTube’s dominance is especially strong in the mobile video arena. “The number of users coming to YouTube, who start at the YouTube homepage similar to the way they might turn on their TV, is up over three times year-over-year,” he commented. “Plus, once users are in YouTube, they are spending more time per session watching videos. On mobile, the average viewing session is now more than 40 minutes, up more than 50% year-over-year.”
Overall, for Q2, Google reported revenues of $17.7 billion and revenue growth of 11% year over year.