YouTube's ad revenue reached $10.47 billion in Q4 2024, marking a 13.8% increase from the previous year. This significant growth was primarily driven by U.S. election advertising, with political spending nearly doubling compared to the 2020 elections.


While exact figures for YouTube Music weren't disclosed, Alphabet's "subscriptions, platforms, and devices" category, which includes YouTube Music, generated $11.63 billion in Q4, showing a 7.8% year-over-year increase.

Key insights:

• YouTube continues to dominate in U.S. TV watch time and video podcasting
• Spotify maintains its lead in music streaming subscribers with 263 million worldwide
• YouTube Music lags behind competitors Spotify, Apple Music, and Amazon Music in U.S. subscriber share
• Spotify's advertising revenue reached $559 million in Q4
• Spotify stock achieved a new record high above $630 per share, with UBS setting a target of $720

The platform's strong performance in video content and advertising comes as Spotify expands its video offerings, particularly in podcasting. In November, Spotify launched a revamped monetization program for video podcasts, though YouTube's established position in this space presents a significant challenge.

Alphabet's stock (NASDAQ: GOOG) closed at $193.30, down nearly 7% following the earnings report. Despite YouTube's strong ad performance, the platform's music streaming service continues to face stiff competition in the U.S. market, where rival services maintain stronger subscriber bases.

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