(Hypebot) — Thanks to a steady uptick in online consumer and business activity, YouTube’s advertising revenues ticked up a solid 84% in the second quarter of 2021, bringing in $7 billion.
Guest post by Emmanuel Legrand of the Legrand Network
For the second quarter of 2020, Google’s parent company Alphabet posted consolidated revenues of $61.9 billion, up 62% year-on-year, with operating income at $19.4bn, up 203% over the same period a year ago.
Sundar Pichai (pictured, below), CEO Alphabet and Google, said during a call with analysts that the company “saw a rising tide of online consumer and business activity,” during the quarter. “We’re proud that our services helped so many businesses and partners.”
Pichai added that in Q2, the company “set a number of records”: “This quarter, publisher partners earned more than they ever have from our network. We also paid more to YouTube creators and partners than in any quarter in our history. And on top of that, over the past year, we have sent more traffic to third party websites than any year prior, in addition to generating billions of direct connections – like phone calls, directions, ordering food and making reservations – that drove customers and revenue to businesses around the world that are working to get back on their feet.”
Record growth in advertising revenue at YouTube
Total Google Services revenues reached $57.1bn, up 63% y-o-y. The increase in advertising revenue was particularly notable at YouTube, as it topped $7.0bn, up 84%. Google Services includes products and services such as ads, Android, Chrome, hardware, Google Maps, Google Play, Search, and YouTube.
Google Services generates revenues primarily from advertising; sales of apps, in-app purchases, digital content products, and hardware; and fees received for subscription-based products such as YouTube Premium and YouTube TV.
Pichai elaborated on the achievements of YouTube during the quarter. He said, “YouTube Shorts continues to gain momentum. We’ve been rolling it out everywhere YouTube is available, in more than 100 countries worldwide.”
Progress with YouTube subscriptions
He added: I’m proud to announce that YouTube Shorts has just surpassed 15 billion daily views. I’m also pleased with the progress we’re making with YouTube’s subscription products across Music, Premium and YouTube TV, each delivering a fantastic experience and content for viewers.”
Ruth Porat, Alphabet and Google CFO, noted that the company’s total cost of revenues was $26.2bn, up 41%, with a 29% growth in Other Cost of Revenues, at $15.3 billion, up 29%, which includes content acquisition costs.