In Q2 2025, YouTube’s advertising revenue rose 13% year-over-year, reaching $9.796 billion, solidifying its position as a dominant force in the digital advertising landscape, according to Alphabet’s earnings report.
This growth, which surpassed Wall Street’s estimate of $9.56 billion, reflects YouTube’s ability to capture a larger share of advertising budgets, particularly as television becomes the primary platform for its viewership.
Revenue Growth: The $9.796 billion in ad revenue for Q2 2025 marks a continuation of double-digit growth, following a 10.3% increase in Q1 2025 ($8.93 billion) and a 12% rise in Q3 2024 ($8.92 billion). The growth is driven by strong demand for both direct response ads (prompting immediate actions like purchases) and brand advertising, with YouTube’s advanced AI-driven ad targeting enhancing its appeal to advertisers.
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In Q1 2025, TVs surpassed mobile devices as the primary platform for YouTube viewing, reflecting a shift toward living room consumption. This trend is eroding the audience share of traditional broadcast and cable networks, as YouTube’s 9.9% share of U.S. TV time outpaces competitors like Netflix (8.4%).
YouTube’s gains are diverting ad dollars from traditional networks, which have seen declines in viewership and ad revenue.
YouTube’s gains are diverting ad dollars from traditional networks, which have seen declines in viewership and ad revenue.
YouTube’s success contributed to Alphabet’s robust Q2 2025 performance, with total revenue of $96.43 billion (up 14% year-over-year) and net income of $28.2 billion (up 19%), exceeding analyst expectations of $94 billion and $2.18 per share. YouTube’s ad revenue accounted for over 10% of Alphabet’s total revenue, underscoring its growing importance. The platform’s subscription services, like YouTube Premium and YouTube TV, also grew, generating $11.2 billion in Q2 (up 20%), though ad revenue remains the primary driver.