YouTube, Buoyed by Brands Ads, Seeks Growth in Direct Response Ads

By Patience Haggin

YouTube's ad revenue grew 31% year-on-year in 2019, hitting $4.7 billion, the company disclosed in a Monday earnings call as its owner Alphabet Inc. pulled back the veil on its digital-video platform for the first time.

That growth was "driven by substantial growth in direct and response and ongoing healthy growth in brand advertising, which remains the largest component," explained Alphabet senior vice president and chief financial officer Ruth Porat.

The distinction lies in the purpose of the ad--and often its potential interactive features. Brand ads are designed to establish a relationship between the brand and its consumers. Direct-response ads are designed to prompt an immediate action.

"In direct response, we're letting brands insert a tailored call to action in a video ad, such as signing up for a newsletter or scheduling an appointment or downloading an app or booking a trip, things of those sort," Ms. Porat explained.

"We see substantial, continuing opportunity in direct response as well as with brand advertisers," Ms. Porat added.

Write to Patience Haggin at [e-mail]

(END) Dow Jones Newswires

February 04, 2020 18:44 ET (23:44 GMT)

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