YouTube ad revenue surges 13.8% to $10.47 in Q4, fueling growth for Google

Google’s advertising revenue rose 10.6% to $72.46 billion in the fourth quarter beating the third quarter's 10.4% growth of $71.84 billion. Ad revenue from YouTube grew 13.8% to $10.47 billion in the fourth quarter, compared with the 12.2% growth in the third quarter.

Alphabet’s chief business officer Philipp Schindler said the growth was helped by U.S. election advertising, with combined spending by Democrats and Republicans nearly doubling compared with the 2020 election.

The search revenue growth was 12.5%, compared to 12.7% in the fourth quarter of last year. 

Overall, Google's revenue rose 12% to $96.47 billion in the fourth quarter, compared with the average analyst estimate of $96.56 billion, according to data compiled by LSEG. 

Focus on AI continues 

The company also announced that it plans to invest $75 billion in capital expenditures in 2025 as it continues to expand on its AI strategy. 

Sundar Pichai, CEO, of Alphabet said, “Q4 was a strong quarter driven by our leadership in AI and momentum across the business. We are building, testing, and launching products and models faster than ever, and making significant progress in compute and driving efficiencies. In Search, advances like AI Overviews and Circle to Search are increasing user engagement. Our AI-powered Google Cloud portfolio is seeing stronger customer demand, and YouTube continues to be the leader in streaming watchtime and podcasts. Together, Cloud and YouTube exited 2024 at an annual revenue run rate of $110 billion. Our results show the power of our differentiated full-stack approach to AI innovation and the continued strength of our core businesses. We are confident about the opportunities ahead, and to accelerate our progress, we expect to invest approximately $75 billion in capital expenditures in 2025.