YouTube is starting to become more of a factor in its parent company’s financial growth. In its Q3 earnings call for 2015, Google’s own newly-formed parent company Alphabet emphasized the role YouTube played in helping the internet giant grow its revenue 13% year-over-year to hit $18.7 billion.
During the call, Google CEO Sundar Pichai shed more light on why and how YouTube has been so instrumental to Google’s recent growth, citing the online video site’s ability to help consumers make purchasing decisions as a prime factor. “People turn to YouTube and they want to research, buy or fix a product,” Pichai said, according to Wired. “For example, mobile watch time for apparel videos has doubled this year and videos about toys have also doubled.” Pichai also noted how YouTube’s new shopping ads will only help propel the video site forward as a retail destination.
While YouTube was vital to Google’s Q3 success, mobile search was the main driving force behind the company’s revenue (much like it was in Q2). Pichai said Google increased its mobile advertising revenue this quarter, thanks to Google’s DoubleClick programmatic technology. The number of ads served through that service to YouTube and other mobile platforms increased 3.5 times over Q3 2014’s numbers.
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“Our Q3 results show the strength of Google’s business, particularly in mobile search,” said Ruth Porat, CFO of Alphabet and Google, in a release. “With six products now having more than 1 billion users globally, we’re excited about the opportunities ahead of Google, and across Alphabet.”
You can check out all the specific financials of Google’s Q3 2015 report here.
