le Search Revenue Rises 5%; slight increase in Total Ad Revenue //
Alphabet Inc. (parent company of Google) reported higher advertising revenues in the second quarter 2023.
YouTube ads (4,4%) accounted for a 2% increase in search revenue.
Google’s advertising network, however, was down by 5%.
- Ruth Porat, Alphabet’s Chief Financial Officer said: “Our results show continued resilience in Search with revenue growth accelerating in both Search as well as YouTube.”
The results exceeded expectations but the growth rates of just one-tenth suggest that digital advertising has not yet recovered to its former glory. Experts believe that this will happen in the fourth quarter of 2023.
Why do we care. This better-than expected performance could indicate that trust and confidence in digital advertising are finally stabilizing after the economic downturn. It’s great news for digital marketers as it indicates that ad spending is likely to increase as we approach the crucial holiday season in Q4.
AI Leadership. Google’s advertising revenue increased $1.85 billion over the past year. YouTube’s revenue grew from $7.34 to $7.67 billion.
Philipp Schindler is Google’s Chief Executive Officer. He said that the company would continue to invest heavily in AI, as it enters its seventh year of being an AI-first business.
- “Generative Ai supercharges new and existing advertising products. We help advertisers make better decisions, solve issues and boost creativity. Schindler stated, “I’m excited about AI.”
Stepping down. Alphabet announced in its Q2 announcement that Porart will step down from his position as CFO. He has been at Google for eight years. She will assume the newly created position of President and Chief Investment Officer in September.
Porart’s new role will see her responsible for Alphabet’s “other bets” and continue to work closely with CEO Pichai. Porart will be in charge of strengthening the company’s relationship with policymakers and assisting it to shape corporate investments that have maximum economic impact.
Earnings Report. For more information, you can read Alphabet’s results for the second quarter of 2023.
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