Google recently announced $17.7 billion revenue in the first quarter of this year, $15.5 billion of which came from advertising revenue.
Ruth Porat, who took over the company’s CFO position, said: “Our strong Q2 results reflect continued growth across the breadth of our products, most notably core search, where mobile stood out, as well as YouTube and programmatic advertising…We are focused every day on developing big new opportunities across a wide range of businesses. We will do so with great care regarding resource allocation.”
Interestingly, Google’s decision to adjust its search algorithm in order to catalyse mobile development has apparently paid off, as rising user experience rates drove up the value and price of mobile ads. Google’s owned and operated apps also saw huge growth, Google Hangouts and Google Chrome each crossed 1 billion downloads in recent weeks, the company’s 11th and 12th products to reach that milestone.
Chief Business Officer Omid Kordestani said securing more high-end ad budgets for YouTube would be a priority moving forward as “brand dollars follow the migration from TV to digital.” Pre-roll
YouTube adverts have helped increase the number of advertisers on YouTube by 40%. The average spend on YouTube is up by an enormous 60%.
What do Google’s Q2 results mean for advertisers?
Continue to invest in mobile advertising as the channel continues to grow, particularly YouTube. Make the most out of your collateral by posting and promoting your videos across multiple channels as well as YouTube including Facebook and Instagram.
Look to other channels too. Bing has grown by nearly 20% in the UK over the past 12 months and one in 5 US-based desktop searches were made using Bing, according to comScore’s March data. Bing also offers great value for money, last year the average CPC was $0.15 cheaper than Google’s CPC in 7 out of 8 cases. Bing is also a good channel to use when targeting users in an older target market, Bing users are traditionally aged between 55-64 years old.