eMarketer are predicting that YouTube revenues will hit $5.6bn this year, 50% up on last year (reported in the Guarian). Here are some other relevant facts:
- Projections of YouTube’s revenues are increasing over time – in May Morgan Stanley were predicting $4bn
- The growth is coming from young people who are watching most of their television online – this is a good example of a behaviour from a fringe group that is likely to become mainstream
- Television’s share of advertising budgets has peaked
- YouTube is now at 1.7% of global digital advertising spend – more than Twitter
For me there are two big takeaways. Firstly the advertising shift from TV to the internet has started and the trend will only be one way from here. Secondly Google is sitting on a major media asset. Their $1.7bn acquisition of YouTube in 2006 now looks amazingly prescient.