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YouTube Ad Revenue Jumps 10.3% To $8.9B

Google began testing AI Overviews in YouTube as the company turned 20 and the video site’s ad revenue climbed 10% to $8.9 billion in the first quarter of 2025.

Its YouTube TV service has become one of the top pay-TV operators in the U.S. with increasing numbers of podcasts and other programming being viewed on TV sets rather than mobile.

TV has become the primary device for YouTube viewing in the U.S. The site now has more than 1 billion monthly active podcast users.

Alphabet during its earnings call on Thursday said it supports more than 270 million paid subscriptions driven by the video site and cloud storage service Google One. YouTube Music and Premium supports more than 125 million subscribers, including trials, globally.

For the past two years, according to Nielsen, YouTube has been number one in streaming watch time in the U.S. ''

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The company will hold its annual Brandcast event for advertisers on May 14 in New York.

YouTube began experimenting this week with a video results carousel that uses AI Overviews. It serves up after a user enters certain search queries. This feature uses AI to highlight clips from videos that it has deemed the most helpful related to the search query. The feature was not mentioned on the call.

The feature is intended to provide another way to discover content when searching on YouTube as well as discover topics and information related to a search query.

This will show when someone searches for more information about products being shopped such as “best noise cancelling headphones,"  or when someone searches for more information about locations or things to do.

The test is being rolled out to a small number of YouTube Premium members in the U.S. for some English search queries. 

The company has come a long way in the past 20 years. YouTube Space in Los Angeles opened in January 2013, for example, and I attended the opening.

This past Wednesday -- April 23, 2025 -- marked the 20th anniversary of the the first video shared on the platform.

“Me at the Zoo,” is a 19-second clip that co-founder Jawed Karim shot in front of the elephant exhibit at the San Diego Zoo. As a reminder to marketers, Karim co-founded YouTube with Chad Hurley and Steve Chen.  

Google did not own YouTube at the time. It wasn't until October 9, 2006 that Google announced the acquisition, paying $1.65 billion in Google stock. The deal was finalized in November.

There have been 20 billion videos uploaded to date. I contributed a couple of videos from early on as I tested the platform.

Supporting creators have become a major strategy for YouTube supported by solutions like Takeovers,  First Position, and Spotlight sponsorships for brands to align themselves to events, creators and fandom. 

Discover has seen a significant lift in message association with its tagline “A debit card with cash back” and an 11.8% boost in association with music moments among viewers who saw the ad three or more times. This demonstrates the power of showing up early, often, and in the right context, according to YouTube.

IHG Hotels & Resorts used major sporting events that appeal to luxury travelers. It reached out on linear TV, as well as to gain awareness and search for its brands.

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