All those pesky YouTube Ads are turning out to be a boon for YouTube. For the end of the quarter on September 30, 2023, tech giant Alphabet, the parent company of Google, reported a total ad revenue of $59.6 billion. The ad revenue touched $44 billion, which was brought in by Google’s search business, which marked a hike of 11.3 %.
YouTube has generated $7.95 billion in ad revenue for Q3 2023. It has been a 12.5% increase from the previous year. The corporation has credited the positive outcome to brand and direct-response advertising. The total ad revenue for the company has grown by 9.5%.
The ad revenue in the previous year had been a far lesser number- a mere 1.9% since 2021.
At an investor call, Sundar Pichai, CEO of Google, reported that daily views for the short-form video platform have increased significantly. YouTube Shorts has increased in views to 70 billion per day. It was 50 billion earlier this year. He even added that the company is planning to introduce enhancements for Shorts, including AI-powered editing tools along with other features.
In his statement, he said, “I’m pleased with our financial results and our product momentum this quarter, with AI-driven innovations across Search, YouTube, Cloud, our Pixel devices and more. We’re continuing to focus on making AI more helpful for everyone; there’s exciting progress and lots more to come.”
Google has registered a total profit of $19.7 billion for the third quarter of 2023. It marks a 46% increase from that of Q3 of 2022. The company’s total revenue has reached $76.7 billion (11%).
Google’s cloud computing services, Google Cloud, have also seen an increase in profit margins due to increased business in AI training tools. It marked a growth of 22% year over year in revenue.
Interestingly, Google Cloud’s performance in Q3 revenue of $8.41 billion fell short of investor expectations. It missed the planned $8.64 billion. Alphabet is even facing an antitrust trial, where it has been alleged of monopolistic practices in search dominance.
This has led to Alphabet’s shares declining over 6% in after-hours trading, despite YouTube’s otherwise strong performance.
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