Google has revealed that Psy’s Gangnam Style video, the most popular on YouTube in history, has generated more than $8m from the site in advertising since launching last year.
Speaking to investors following the announcement of Google’s Q4 and full-year fiscal results last night, Nikesh Arora - Senior Vice President, Chief Business Officer - revealed that across search display, YouTube and more, Google’s top 25 advertisers are now spending average of over $150 million per year.
Meanwhile, YouTube Partner revenue, which benefits rightsholders across the music industry, grew again in significant quantaties.
Said Arora: “YouTube is well positioned for the changing viewing habits of today's multi-screen world. The site's new redesign is focused on channels and that has led to major increase in engagement.
"In 2012, viewers watched over 4 billion hours of video on YouTube a month and it's now available across over 400 million mobile devices, gaming consoles and connector PDs in addition to your desktop.
“YouTube creators continue to vow and attract audiences. Outside estimate say that video on which I am sure all of you have seen of PSY, his hit song, Gangnam Style, now the most watched YouTube video for all times, it generated over $8 million in all-in advertising deal. YouTube Partner revenue has doubled for the fourth consecutive year and thousands of channels are now making six figures annually.”
He added: “YouTube is not only home for creators, but it's also home for major brand advisers. On YouTube, our top 100 global advertisers spent over 50% more in 2012 than they did in 2011. Clearly this is a strong signal of the power in YouTube to reach audiences.
What's interesting is the significant factor into growth of YouTube has been our TrueView skippable ad format. Agencies and marketers are seeing real benefits. You only pay for the ad if viewers watch them. In fact, 70% of our in-stream ads are now TrueView formats and this quarter TrueView came to Xbox, the iPad, and the Wii.”
Meanwhile, Google CEO Larry Page claimed that the company’s iTunes/Spotify rival Google Play was “on fire” since launching last year.
“The growth is tremendous,” he said. “This quarter we signed deals with Time as well as Warner Music Group. So we now provide contents from all the top Hollywood film studios, music labels and magazine publishers. We have not even reached Google Play's first anniversary.”