Google’s efforts to revamp its mobile advertising business have paid off. Its Alphabet latest earnings announcement surpassed Wall Street expectations at $22.5bn and earnings per share of $9.06.
Alphabet earnings overview
With mobile advertising booming, ad clicks across Google-owned sites increased 42% compared to 2015. Indeed, much of the good performance is being attributed to the firm’s mobile business with mobile search and YouTube advertising sales at the forefront.
During the second quarter 2016, Google’s growth rate had also shot back up to levels from two years ago
According to eMarketer, 60% of Google advertising revenues will be coming from mobile in 2016. That’s an increase of 46% from last year. Rival Facebook makes 82% of its revenue from mobile ads. However, Google’s mobile market share is still larger (32%) compared to Facebook’s (19%).
The company is also working on a range of new business ventures including a smartphone as well as its new cloud division.
Norm Johnston, global chief strategy & digital officer, Mindshare Worldwide told IBTimes UK:
“Overall a strong showing from Alphabet driven by its two Google growth engines of YouTube video and search. Importantly mobile search seems to have hit a long anticipated inflection point where the volume in paid clicks is making up for declining cost-per-click. Google’s ‘Other Bets’ only remain an inspirational brand high note for publicity. Alphabet must question how long it’s current cash cow advertising business can continue to support its loss-making long-term moonshot ambitions.”