Google revenue on global advertising hits $50bn in Q2
Alphabet, the parent company of Google and YouTube, has recently released the Q2 2021 earnings, reporting that revenue jumped from 62% to $61.88 billion. This represents the company’s largest percentage jump in quarterly sales in the last 14 years.
In the same vein, Google search also reported Ad spends of $35.8bn, making the overall revenue to be $50.4bn from advertising during the second quarter. While Google cloud posted revenue $4.6bn for the same quarter.
In a statement, Ruth Porat, CEO Alphabet, said: “Our strong second-quarter revenues of $61.9 billion reflect elevated consumer online activity and broad-based strength in advertiser spend.”
Also speaking, Sundar Pichai, CEO of Google and Alphabet, stated that: “In Q2, there was a rising tide of online activity in many parts of the world, and we’re proud that our services helped so many consumers and businesses. Our long-term investments in AI (artificial intelligence) and Google Cloud are helping us drive significant improvements in everyone’s digital experience.”
Google’s Search and Other brought in $35.8 billion up from $21.3 billion. The number reflects a comparison to 2020 at the height of the COVID-19 pandemic, when companies pulled back on advertising, but the ad company still did well. YouTube helped to boost revenue regardless of the pandemic.
Pichai continued: “We are working not only with TV providers globally; we are doing it with cable box manufacturers, as well as we supplemented with Google TV with Chromecast as well.
“So it’s a significant investment from our side, making sure we can drive that shift, and obviously it adds a lot of synergies for us in terms of being able to bring our services to our users.”
Philipp Schindler, Alphabet’s chief business officer, said: “This investment, will help the company not just tap above-the-line marketing budgets, but also access below-the-line budgets.
“And, sure, we’ve seen Covid accelerate the shift to ecommerce at an astounding rate, but keep also in mind, 80% of commerce still remains offline.”
“So there’s a lot of room for digital to play a bigger role, and we think we can tap into other budgets that were traditionally used for, let’s say, local advertising to derive sales.”
YouTube’s revenue rose more than 83% to about $7 billion. The rise was driven partly by the video platform’s Shorts product, which “surpassed 15 billion global daily views,” up 131% from the 6.5 billion global daily views that it detailed in March.
The Google network generated $7.5 billion, up from $4.7 billion in the year-ago quarter. Google Cloud reported revenue of $4.6 billion, up from $3 billion in Q2 2020.
The growth rate is slightly above what Microsoft posted for Azure, its cloud unit, despite that the Redmond, Washington, company beat expectation on growth. Microsoft reported that revenue rose 21% to $46.15 billion in the second quarter. Revenue from Azure, which competes with Google Cloud and Amazon Web Services, grew 51% in the quarter.
The company’s Personal Computing segment, which includes Windows, gaming and search advertising rose 9% to generate $14.09 billion.
Microsoft’s Intelligent Cloud segment which includes Azure, Windows Server, SQL Server, and GitHub rose 30% from the prior year to reach revenue of $17.38 billion.
The Productivity and Business Processes unit, which contains Office software Dynamics, and LinkedIn, contributed $14.69 billion.
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