Google Alphabet revenue benefits from strong mobile search, YouTube and programmatic advertising

Anne Freier

In Mobile Advertising

February 7, 2017


Source Google

Google Alphabet has seen a surge in revenue largely thanks to mobile search activity, YouTube and programmatic advertising.
According to the company’s latest earnings call, overall revenue stood at $26.1 billion for the final quarter of 2016. That’s an increase of 22% over the same period in 2015.
Net income rose to $5.33 billion, up from $4.92 billion.
Digital marketer Merkle found that 96% of all clicks for search ads on mobile came from Google.
In addition, the web behemoth has seen solid growth of its Product Listing Ads (PLA) for retailers (up 30% from 2015). The increase could be due to Google expanding data and consumer targeting features of PLAs as well as sharing an extension of the format with YouTube.
Online retailer Amazon has also dipped its toes into the PLA pond and trialled the format for the first time in 2016.
All this suggests that mobile ads may soon be upping their price tags. If the format continues to perform more strongly than desktop advertising, Google is likely to hike rates.
Although, the company does not officially share revenue data for YouTube, eMarketer estimates that its ad revenue should rise 21% to $7.05 billion this year.
And despite Google ramping up its hardware business which some analysts are hopeful for, it’s unlikely to bring in the big bucks just yet.