"Google's revenue derived from advertising rose 13.6% year over year to $82.3 billion in Q4 while the search giant's annual revenue surpassed $400 billion for the first time in 2025, according to an earnings statement from parent Alphabet. Search and other, the company's largest segment, grew ad revenue 16.7% YoY to $63.1 billion in Q4. YouTube ad revenue climbed 8.7% to $11.4 billion, propelled by direct-response formats, for the end-of-year period that includes the holidays."
"YouTube's rate of growth declined roughly five percentage points from the year-ago period, which executives attributed to lapping a moment of substantial political ad spending in 2024. But Google is also starting to think about YouTube's monetization differently as focus turns to subscription-based offerings, including its connected TV package, music streaming service and ad-free premium tier. Taking a step back, I think it's important to think about YouTube ads and subs holistically,"
Google's advertising revenue rose 13.6% year over year to $82.3 billion in Q4, and annual revenue surpassed $400 billion for the first time in 2025. The Search and Other segment increased ad revenue 16.7% to $63.1 billion. YouTube ad revenue grew 8.7% to $11.4 billion, driven by direct-response formats, though its growth rate slowed roughly five percentage points after elevated political ad spending the prior year. Google is moving toward subscription-based YouTube offerings—connected TV packages, music streaming, and an ad-free premium tier—and reports YouTube generated more than $60 billion across ads and subscriptions. Google is experimenting with shoppable living-room ad formats and planning more YouTube TV plan options while securing deals to carry major broadcast events.
Read at www.marketingdive.com
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