YouTube will generate 50 per cent in ad revenue year-on-year in 2013 says a report from eMarketer. Advertisers will spend a projected $5.6 billion as advertisers seek a younger audience watching on new devices.

YouTube does not keep all of the advertising revenue that flows through its site, paying much of it to partners and “content creators”. The research firm predicts YouTube’s net revenues will be $1.96 billion once those partners have been paid, giving it 1.7 per cent of all global digital advertising spending.

“Video ad revenues are expected to increase significantly in coming years for YouTube’s US operations, particularly as mobile video viewership grows,” said the report.

YouTube has more than 1 billion viewers every month and attracts about 20 per cent of all advertising spending on US online video. It has faced competition from rival sites such as Hulu, which expects to generate $1 billion in advertising revenues in 2013.

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