YouTube's ad revenue reached a record $10.47 billion in Q4 2024, marking a 13.8% increase from Q3 2023. This substantial growth was primarily driven by U.S. election advertising spending, which doubled compared to the 2020 elections.


While specific YouTube Music revenue figures weren't disclosed, Alphabet reported that its "subscriptions, platforms, and devices" segment, which includes YouTube Music, generated $11.63 billion in Q4 2024, up 7.8% year-over-year.

Key findings from the earnings report:

• YouTube maintains dominance in U.S. TV watch time and video podcasting
• Spotify leads in music streaming subscribers with 263 million worldwide
• YouTube Music lags behind competitors (Spotify, Apple Music, Amazon Music) in U.S. subscriber share

The platform's strong performance comes as Spotify expands its video offerings, particularly in podcasting, where YouTube currently holds the leading position. Spotify announced a new video podcast monetization program in November 2024, setting the stage for increased competition in this space.

Market impact:

• Alphabet (GOOG) stock declined 7% to $193.30 per share
• Spotify stock reached a new record high of $630 per share
• UBS raised Spotify's price target to $720

These results highlight YouTube's growing influence in digital advertising and content monetization, while also revealing the platform's ongoing challenges in music streaming subscriber acquisition compared to its competitors.

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