Google video site to net $1.96 billion in advertising revenue this year, according to eMarketer

YouTube is expected to generate about $5.6 billion in gross advertising revenue worldwide this year, according to a report from research firm eMarketer — an estimate considerably higher than previous Wall Street forecasts.

Google doesn’t break out financial results of YouTube, the Internet’s No. 1 video destination by a wide margin. The eMarketer analysis, based on data points gathered from multiple research reports, tops previous projections for 2013 from firms including Jefferies & Co.’s $4.5 billion and Barclays Capital’s $3.6 billion.

YouTube will net $1.96 billion in ad revenue, up 66% from 2012, after paying content and ad partners, according to eMarketer. YouTube’s projected $1.1 billion in U.S. net revenue would represent 6.3% of all of Google’s net ad revenues for the year, the firm estimated.

About 79% of YouTube’s U.S. ad revenue is from video advertising, with an estimated $850 million in for the year. That would give it a 20.5% share of the overall $4.15 billion U.S. video ad market. In 2014, eMarketer estimates YouTube video-ad revenue to hit $1.22 billion taking a 21.1% share.

To analyze YouTube revenue, eMarketer said it developed forecasting models based on third-party research on its ad revenue, ad impressions, rates, usage, partner fees and other figures.

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