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Google Inc (GOOG) Triples YouTube Ad Revenue, Thanks to Apple Inc. (AAPL)

The YouTube app was gone. On Aug. 6, 2012, MacRumors was one of the first to notice that Google Inc (NASDAQ:GOOG)‘s video-sharing app had been pulled from Apple Inc. (NASDAQ:AAPL)‘s iOS. This wasn’t the first Google app to be ousted. Its sudden disappearance followed the banishment of Google Maps. This seemed to be the beginning of the end for Google on iOS.

Boy, were we wrong.

Google Inc (GOOG)

YouTube ads propel mind-boggling revenue growth
Ever wonder what kind of revenue YouTube earns on mobile devices? Well, there’s no need to guess. Google Inc (NASDAQ:GOOG)’s Lucas Watson, vice president of sales at YouTube, sat down with Bloomberg and shared some numbers. “The commercial business has exploded,” he said. “It’s a huge part of our business, and we know that’s where it’s headed.” YouTube’s ad revenue has tripled over the last six months, contributing revenue of $350 million to YouTube in that period.

What’s driving growth? As Bloomberg reported, “‘The recent growth in usage follows Apple Inc. (NASDAQ:AAPL)’s decision last year to drop YouTube as a core application in the iOS software for iPhones and iPads,’ said Phil Farhi, director of product management at YouTube.” Shortly, after Google launched a native YouTube app for the iPhone that supported ads, unlike the previously stocked version. The new app flourished, indicating a cause-and-effect relationship between Apple Inc. (NASDAQ:AAPL)’s decision to drop the app and YouTube’s increased success on mobile.

A small piece of a bigger puzzle
To the extent YouTube can thank Apple Inc. (NASDAQ:AAPL), no one knows. Nevertheless, YouTube mobile is undoubtedly firing on all cylinders. YouTube app use is up 42% from a year ago, according to Nielsen.

These stats aren’t much of a surprise for investors closely following YouTube, though. The video-sharing site has been a key focus for analysts covering Google Inc (NASDAQ:GOOG) stock. From the 1 billion monthly active users it announced in March to the explosive growth of video advertising as a whole, YouTube is crushing it.

If you’re looking for another reason to buy Google or to hold shares, YouTube’s jaw-dropping success in the very important mobile market should be added to your list. According to Martin Pyykkonen, an analyst from Wedge Partners, YouTube may have accounted for as much of 25% of Google Inc (NASDAQ:GOOG)’s $14 billion in sales last quarter. Don’t be surprised to see YouTube’s growth begin to have a more meaningful effect on the company’s overall revenue growth rates in the years to come.

The article Google Triples YouTube Ad Revenue, Thanks to Apple originally appeared on

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG).

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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