Hitting $61.9B, Google Parent Company Alphabet Revenue Rises By 62%

As of the end of the second quarter, Google’s advertising income was $50.4 billion, accounting for the largest chunk of Alphabet’s $61.9 billion in revenue. 

Now, the world’s largest digital marketer has generated more than $560 million in advertising income over the previous three months – every single day! 

Alphabet’s earnings are up 62 percent year over year from Q2 last year, when the firm experienced its first-ever sales loss owing to the global pandemic’s effects.

Sundar Pichai, CEO of Alphabet, and Google said in a prepared statement that the figures show a growing surge of online activity. 

CFO of the companies, Ruth Porat said – 

Revenues of $61.9 billion reflect elevated consumer online activity and broad-based strength in advertiser spend

Alphabet also carefully dissected the results of its many advertising departments. Ad revenue increased to $50.4 billion from $29.9 billion a year ago. 

During the reporting period, search advertising brought in $35.8 billion, YouTube brought in $7 billion, and Google’s ad network brought in another $7.6 billion in media expenditure.

Traffic acquisition costs (TAC)–the amount of money Google needs to invest to get the attention needed to attract ad spend–kept rising in the third quarter, approaching $11 billion, up from $6.7 billion a year earlier.

Porat told investors on the company’s earnings call that Google’s search ad sales increased by 68 percent during the quarter, with retailer expenditure being a key contributor. 

Additionally, Porat also said that YouTube’s 84 percent rise in advertising income over the period reflected the platform’s rising appeal among brand marketers.

She also stated that Google Ad Manager and AdMob were the two most important drivers of ad network spend. 

The second quarter of 2020, which saw revenue decline by 1.5 percent yearly, was described by Alphabet executives as a “tale of two quarters” marked by an abrupt stoppage of advertising expenditure.

Marketers who promptly restarted their campaigns spent a large portion of their budgets online, as shown by Google’s recent revenue increase.