YouTube has had a huge impact on the internet in the last couple of years, but it appears that it’s not all good news for advertisers.
The streaming video giant has recorded the biggest quarterly profit ever on YouTube, with its ad revenue increasing by a staggering $2.5 billion over the year to $5.1 billion.
YouTube reported net income of $2 billion, up from $1.9 billion in the previous quarter, according to the company’s latest quarterly financial report, which is published on Thursday.
The news comes just two weeks after Google announced its first profit in four years.
This has seen YouTube revenue grow by 22.5% in the year, compared to $1 billion in 2017.
The ad-driven video giant said that revenue grew 25% on average in the first quarter of 2018.
The growth has been driven by growth in its video advertising business, which grew by 15.3% in 2018 compared to the same period in 2017, according the company.
“YouTube video ad revenue grew by 18.4% in fiscal 2018 to $3.2 billion,” YouTube said.
“In the quarter ended September 30, 2018, the average revenue per user was $3,926, up 2.2% from the same quarter in 2017.”
YouTube’s advertising revenue grew at an average of 21.6% year-on-year.
The video streaming platform has been enjoying a huge growth in ad revenues, particularly in its own video ads.
Advertisers are buying more and more content, with YouTube spending more than $50 billion on ad campaigns in the past five years.
That’s on top of spending $5 billion on YouTube’s original video ads in the same timeframe, according a recent study by research firm Strategy Analytics.
This is because YouTube is one of the largest platforms for users to monetise content, making it attractive for advertisers to target audiences.
Google also announced that it will invest $50 million in the advertising network for the next few years.
“Google has been growing our advertising network with its own brand new ad products for a number of years and we’re really pleased with the growth we’ve seen,” YouTube CEO Sundar Pichai said in a statement.
“This investment is a really important step forward in the growth of our business and will help us accelerate our growth as well as expand our ad products.”