Google records 15% increase in Q3 advertising spend
By Oluwaseyi Lawal
Alphabet, Google’s parent company, has reported a 15% rise in revenue for the third quarter of 2024, reaching $88.27 billion compared to the same period last year.
In the previous quarter, Alphabet recorded $84.7 billion in revenue and $23.62 billion in net income.
Google Advertising revenue grew by 10.6% year-over-year to $65.9 billion, driven primarily by search, which remains the company’s largest revenue contributor. Revenue from Google Search rose 12% to $49.4 billion, slightly above the $49 billion estimated by analysts. Google highlighted that AI is enhancing the search experience, particularly for younger audiences.
Google’s new AI Overviews feature, displaying search and shopping ads on U.S. mobile devices, is receiving positive feedback, according to the company.
Revenue from Google Services rose 13% to $76.5 billion, with growth across Google Search, subscriptions, platforms, devices, and YouTube ads. YouTube ad revenue climbed to $8.92 billion from $7.95 billion a year earlier, while Cloud services reached $11.35 billion, up from $8.41 billion.
YouTube’s combined ad and subscription revenue surpassed $50 billion over the past four quarters, with growth driven by YouTube TV, NFL Sunday Ticket, and YouTube Music Premium, as noted by Alphabet and Google CEO Sundar Pichai during the earnings call.
“We are leaning into the experience with Multiview and a new option for creators to organize content into episodes and seasons similar to traditional TV,” Pichai said.
Google Cloud’s revenue saw a 35% year-over-year increase, reaching $11.4 billion, supported by rapid expansion in the company’s AI offerings, according to Google.
This revenue growth comes amid Google’s ongoing antitrust challenges with the U.S. Department of Justice and other global authorities. Additionally, the company faces antitrust claims from Yelp and accusations from Microsoft, alleging that Google has engaged in “shadow” campaigns aimed at hindering its operations.
In Nigeria, there is a significant and growing contribution from Nigerian brands to Google’s revenue, as local and multinational companies alike increase their advertising spending on digital platforms, including Google. This growth aligns with Nigeria’s rapidly expanding digital economy, valued at around $179 million in 2023 and projected to reach nearly $259 million by 2027, as more businesses utilize online advertising to engage with customers.
Google has made substantial investments in Nigeria’s digital infrastructure, committing $1.8 billion in 2023 alone to enhance internet connectivity and provide digital skills training to over 1.5 million Nigerians. These initiatives have bolstered digital adoption, driving more brands and advertisers to utilize Google’s platforms. Major players in sectors like telecommunications, banking, entertainment, and retail are leveraging Google’s ad services to reach Nigeria’s vast, digitally active population.
Additionally, companies like Ad Dynamo, which represents Google in Nigeria, serve top brands in the region, enabling them to manage ads across platforms. This broad support for digital advertising shows that Nigerian companies see value in Google’s reach and data capabilities to strengthen brand visibility and consumer engagement.
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