YouTube revenues may rise by 50% to $5.6bn

YouTube's advertising revenue is going to rise up by more than 50% to $5.6bn in 2013. A report was generated which conforms the treat posed by the internet to traditional TV ads. The report by eMarketer claims that YouTube has become such a draw for advertisers that it will account for 11% of advertising revenues at Google. The eMarketer estimate tops previous predictions. In May, Morgan Stanley predicted that YouTube's gross revenues would reach $4bn in 2013. Google has not revealed YouTube's earnings, but eMarketer research suggests that the search engine got a bargain when it paid $1.65bn for the site in 2006. However, YouTube does not keep all the advertising revenue and must pay a share to advertising partners and providers of content. Google's public statistics for YouTube include the fact that the service attracts 1 billion people watching more than 6bn hours of video a month, with 80% of its traffic coming from outside the US, and 40% of its viewing time happening on mobile devices. Advertisers are keen to buy slots on YouTube because of its young audience, who prefer to watch TV programmes through their computers, tablets and mobile phones rather than conventional televisions.

My view: I personally think that this is so true that Youtube's revenue would rise because due to them being very successful in the market. The reason why the advertising companies are rising their prices is because so many young people use it through their smartphones, tablets, computers rather than the old traditional way, Television. The advertising companies are very smart they know they will generate really good revenue from whatever they are advertising because more than 1 billion users visit Youtube each month, over 6 billion hours of videos are watched each month, 100 hours of videos are uploaded on Youtube every minute.