That segment of YouTube's audience is a major reason why more than half its video clips are watched on mobile devices.
Alphabet, the parent company of Google, reported revenues of $22.45 billion for the third quarter, an increase of 20% from the same period a year ago.
Alphabet once again offered color on its two primary operating segments, including Google and Other Bets.
The bulk of Alphabet's sales are derived from advertising revenues.
Mobile users click on search ads at a higher rate than desktop users, Merkle said, in part because mobile ads take up virtually the entire screen for some searches. Traffic acquisition costs were stable as a percentage of revenue, at 21 percent.
The rise of smartphones also poses challenges for Google.
"YouTube continues to shine".
Last but not least, we can't forget revenue from Google's non-advertising sources.
The company said paid clicks on Google were up 33% from past year but the average cost-per-click was down 11%.
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Google Site revenues rose 23 percent to $$16.1 billion versus Credit Suisse' $16.0 billion estimate, while Google's Network revenues came in at $3.7 billion (up 1 percent year over year) versus Credit Suisse' $3.9 billion estimate.
The 52 week high of shares in Alphabet Inc is 838.5 while the 52 week low for the company's shares is 672.66.
Google underwent a restructuring drive late past year and created Alphabet as a new parent company, making Google's internet operations one division next to other units. The consensus projection called for EPS of $8.64 on revenue of $18 billion.
Shares of the company rose by 4 percent in extended trading after the release of the report, a reversal from their drop of less than 1 percent at NY closing to $817.35. Prudential Financial Inc. now owns 599,027 shares of the company's stock valued at $456,998,000 after buying an additional 12,975 shares in the last quarter. Facebook reports third-quarter earnings next week.
The company's Other Bets division also lost less money with a loss of $840 million compared to last year's $980 million.
Alphabet Inc. will focus its biggest bets next year on the staid world of business software and cloud computing, a marked departure from lofty "moonshots" of recent years, such as burrito-carrying drones and super-fast internet service. However, these other bets also cost Alphabet a total of $865 million and this is actually down from the operating loss of $980 million compared to the same quarter previous year. Google Fiber, Nest and life-sciences unit Verily account for most of the revenue.
Google's total ad revenue rose 18.1% to $19.82bn in the third quarter, accounting for more of its revenues.
The company's non-advertising revenue - a category that includes its cloud business - grew 39% year-over-year to $2.43 billion. Google is making a push into the cloud industry, hoping to steal market share from leaders Amazon.com Inc. and Microsoft Corp.
Earlier this month, Alphabet's board authorised the company to repurchase up to $7bn of its Class C capital stock. The company has announced a new buyback program of $7 billion, clearly reflecting the management's confidence in their future cash generation.