On June 16, chief financial officer of Youtube, Ruth Porat, reported that Youtube had its highest growth rate in two years with a 60% increase in viewing time compared to last year.
In the second quarter, Google has reported $17.73 billion in total revenue and $3.93 billion in profit, in part because of Youtube's growth.
That translates to a 17% increase in profit from a year ago.
The recent growth of Youtube also helped contribute to an 11% increase in shares for Google in after hours trading.
What Youtube's Growth Means
So what does this mean? This means that the predictions of videos making up over half of online traffic by 2016 seem to be pretty accurate.
It also means that it isn't looking too good for cable TV companies. More people between 18 and 49 years old are consistently watching Youtube more than any cable TV network now in the US.
Another big part of Youtube's recent success has been because of the massive increase in mobile views. Mobile video view time on Youtube has doubled in the last year.
We've seen Google come out with big algorithm changes in recent months for the incorporation of mobile-friendliness as a ranking factor for websites, and you can see why they did.
The rise of mobile browsing is rapidly increasing and Youtube is taking advantage with its user-friendly apps and viewing.
Google is working on getting bigger companies with bigger ad budgets to Youtube as the next phase in its development.
They are also going to unveil their Vimeo-like Youtube subscription options for people who want to watch videos without advertisements.
All of this is great news if you are a video publisher on Youtube trying to build a popular channel.
Not only are more advertisers spending more on Youtube ads, allowing you to make more on monetization, but you will also be able to get paid when your subscribers go for the new Youtube ad-free subscriptions.
Plus, with over 1 billion viewers now and the escalation of video traffic, you can get in front of a lot more people through Youtube than ever.
Video traffic is on the rise, mobile views are skyrocketing, Youtube has gotten 60% more view time and is getting more advertisers with bigger budgets than ever.
Take advantage of these growing trends, so your business doesn't get left behind in the future.
What do you think about Youtube's big increases in view time and popularity?