Alphabet Third-Quarter Revenue Increase Propelled By Advertising
Alphabet saw its third-quarter revenue increase by 14 per cent from 2019, propelled mainly by a rebound in advertising revenue for both Google and YouTube. The result shows that advertising has now returned to normal after any initial lull due to the COVID-19 pandemic.
YouTube made $5 billion in advertising revenue in the third quarter of 2020, an increase of 30 per cent from $3.8 billion in the third quarter of 2019. The service now has over 30 million music and premium paid subscribers. If you add free trials, that’s 35 million. YouTube TV also now has over 3 million subscribers despite a monthly hike in price from $50 to $64.99.
YouTube has seen a 40 per cent increase in views since March 2020. The service saw 1 billion views for DIY face mask tutorials alone according to Google CEO Sundar Pichai.
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“We’re pleased at the degree to which advertisers really reactivated their budgets in the third quarter. YouTube’s strong watch time growth enables advertisers to reach audiences they can’t reach on TV,” CFO of Alphabet and Google, Ruth Porat, said on the call with investors.
Google’s advertising division made $37.1 billion in revenue, an increase from $34 billion in 2019. Pichai says Google search has also proved itself most useful in the year. “This year, including this quarter, showed how valuable Google’s founding product — search — has been to people,” Pichai said.
Google’s other departments, which includes hardware, cloud services, and the Play Store, brought in a revenue of $5.4 billion, This is an increase from $4 billion in 2019. The ‘other bets’ segment, which features Waymo and Verily brought in a revenue of $178 million, however, they lost Alphabet $1.1 billion, an increase from losses incurred in 2019.
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