YouTube surpasses $8 billion in consumer spending on iOS

YouTube has raked in a staggering $8 billion in global consumer spending on the iOS App Store, owing much of its success to the surge in in-app YouTube Premium subscriptions, according to estimates from data.ai.

It took approximately 13.3 years for YouTube to reach this financial milestone, positioning itself as the third non-game app to achieve such heights. TikTok, at 9.2 years, and Tinder, at 11.3 years, lead the pack, with Tencent’s Honor of Kings securing the title for the fastest app to reach this milestone in just 6.7 years.

The analysis delved into YouTube’s core product, excluding apps like YouTube Kids and YouTube TV, showcasing its status as the most-used video platform globally. The primary YouTube app exhibited consistent spending growth and an increased share of all app revenue on iOS. Notably, the majority of spending emanated from the United States, accounting for 55% or nearly $4.4 billion, with Japan following as the second-largest contributor with approximately $711 million, constituting roughly 8.8% of the total spend.

Examining spending on YouTube in iOS, data.ai discovered a remarkable rise from 14 cents per $100 spent on the Apple App Store in 2016 to an impressive $2.71 in 2023. The past year witnessed a staggering 120% increase from 2020 and a 16% rise from the preceding year. Despite a spike in spending (48% year-over-year) during 2021, catalyzed by the pandemic restricting alternative entertainment options, YouTube has showcased its enduring ability to monetize. This resilience is attributed, in part, to the array of new monetization avenues provided to creators in recent years.

The app’s primary in-app purchase, the Super Chat, has emerged as a leading revenue driver, enabling viewers to stand out in a creator’s live chat. Alongside this, features like Super Thanks, introduced since 2020, have contributed to YouTube’s continued success in the monetization sphere. With the challenges of the pandemic fading, YouTube proves that its prowess in monetization is as robust as ever, setting the stage for further innovations and financial milestones in the evolving landscape of digital content consumption.