YouTube Advertising Surpasses an Unprecedented $9.8 Billion ─ The Path to Success in the Red Ocean Driven by "Televisionization"

1. 13% Increase, $9.8 Billion—YouTube Returns to "Double-Digit Growth"

According to Alphabet's earnings report for the April-June 2025 quarter released on the 23rd, YouTube's ad revenue reached $9.8 billion, a 13% increase compared to the same period last year. This exceeded analysts' expectations ($9.6 billion) and became a growth driver for the company's total revenue of $96.4 billion.TechCrunchThe Times

2. The Driving Force is "Living Room First"

According to Nielsen's latest report, YouTube has held the top share of TV screen viewing time in the U.S. for three consecutive months (12.4%). The shift from smartphone-centric viewing habits to CTV has led to the acquisition of higher-priced ads.TechCrunch

3. "Peak Points" and AI Drive Up Unit Prices

The "Peak Points" ads introduced in May are a new format that inserts spots right after the peak scenes of videos. Advertising agencies estimate that this can increase CPM by 10-15% without affecting viewer retention rates. Additionally, creative optimization by Google AI has leveled out ad effectiveness, making it easier for advertisers to specifically purchase CTV slots.Digital Information World

4. Netflix and Amazon Follow, Approaching the "Ad Content War"

Netflix announced its intention to "double ad revenue by the end of this year" in last week's earnings report, but the actual amount is estimated to be around $3 billion, leaving a significant gap with YouTube. Amazon Prime Video and HBO Max are also expanding their ad slots, intensifying the competition for CTV ad spending.TechCrunch

5. "Cheers" and "Sighs" Divided on Social Media

• Investor Side: On X (formerly Twitter), positive posts such as "Ad division exceeded expectations" and "Cloud up 32% with double engines" were trending, with $GOOGL touching the $190 range after hours.X (formerly Twitter)

• Creator Side: On Reddit's r/YouTubeCreators, a thread titled "Increasing non-skippable ads in the middle of videos worsening dropout rates" made it to Hot. Voices of medium-sized channels struggling with the dilemma of increased revenue and decreased viewer retention were prominent.Reddit

• General Viewers: On X, #YouTubePremium trended with criticism like "hard to watch without paying" and defenses such as "ads are inevitable if content is free" being evenly matched.

6. Generative AI Regulation and Live Sports as the Next Focus

In early July, YouTube announced a guideline revision allowing for a blanket ban on AI-generated videos. By eliminating low-quality "AI slop," they aim to enhance brand safety and improve ad unit prices. Meanwhile, the global free streaming of NFL games scheduled for September is set to be a test case for acquiring new viewers and attracting major sponsors.TechCrunchDigital Information World

7. Conclusion—The Key to Ad Spending Trends is "Screen" and "Experience"

The ability to monetize ads without compromising user experience in a hybrid viewing environment of TV and mobile will determine the winners and losers. YouTube is already becoming a "game-changer" in the CTV ad market, but as Netflix and Amazon catch up in the latter half of 2025, innovations in ad formats and AI utilization are expected to intensify further.