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New Delhi: YouTube has reported a record-breaking $10.47 billion in advertising revenue for the fourth quarter of 2024.
This figure marks a 13.8% increase year-over-year, surpassing previous records and analyst predictions, which had set expectations at $10.23 billion.
This performance was highlighted during Alphabet's recent earnings call.
Alphabet's CEO, Sundar Pichai, attributed the robust Q4 results to YouTube's leadership in AI, which has enhanced video recommendations and user engagement, thereby boosting ad sales.
"Q4 was a strong quarter driven by our leadership in AI and momentum across the business," Pichai stated during the earnings report. He emphasised how AI has been instrumental in not just improving ad targeting but also in content discovery for users, thereby increasing the platform's appeal to both creators and advertisers.
The record ad revenue for YouTube in Q4 does not include income from subscription services like YouTube TV or YouTube Premium, indicating that the platform's core ad business alone has reached new heights.
For the full year of 2024, YouTube's advertising revenue totalled $36.15 billion, underscoring its significant contribution to Alphabet's overall revenue, which hit $96.5 billion for the quarter, up 12% from the previous year.
YouTube’s parent company announced its plans to escalate capital expenditures to a staggering $75 billion in 2025, driven by the ongoing AI arms race among tech giants.
Overall, Alphabet's Q4 revenue slightly missed analyst expectations, reaching $96.47 billion against a predicted $96.67 billion. However, the company exceeded earnings estimates, reporting a net income of $26.54 billion, or $2.15 per share, compared to the anticipated $2.13 EPS.
Google Services, which includes advertising from Search and YouTube, reported $84.1 billion in revenue, marking a 10% year-over-year increase. Advertising revenue reached $72.5 billion.