Alphabet, Google’s Parent Company, Reported US$46.2 Billion In Advertising Revenue In The Fourth Quarter, A Year-on-year Increase Of 22%

Recently, Google’s parent company Alphabet announced its fourth quarter 2020 revenue report. Data showed that Alphabet’s fourth quarter revenue was US$56.9 billion, a year-on-year increase of 23%. Among them, Google Cloud revenue was US$3.83 billion, higher than last year’s US$2.6 billion; the search business achieved sales of US$31.9 billion, an increase of 17% year-on-year; the advertising business created a total of US$46.2 billion in sales, compared with Last year it grew 22%.

It is reported that Alphabet has divided its operating business into three major departments, namely Google services, including advertising, video sharing software YouTube, hardware and applications, Google Cloud (Google Cloud) and other businesses.

During the election and year-end holidays, Alphabet's advertising revenue increased significantly. The company's YouTube video sharing platform's advertising revenue reached $6.89 billion, soaring 46% year-on-year, thus pushing the total revenue of its advertising business to $46.2 billion. Dollar.

Google executive Philipp Schindler said that the number of viewers and viewing time of YouTube videos have increased significantly, and more than 100 million users use TV devices to watch YouTube videos.

This strong growth represents a dramatic shift from last year's second quarter. At that time, the outbreak of the epidemic left many advertisers busy with themselves, and a large number of advertising placements were cancelled. As a result, Google's advertising revenue fell by 8%, and Google's business revenue also experienced a year-on-year decline for the first time.

Of all ad types, YouTube's "direct response" advertising business has seen particularly strong revenue growth. Direct response advertising can encourage consumers to take immediate next action, such as downloading a mobile app immediately or jumping to an e-commerce website to purchase products. The performance of direct response advertising appeared to be more resilient last year, while brand advertising revenue experienced a significant decline due to the impact of the epidemic.

"Three years ago, direct response advertising was almost non-existent on YouTube, but now it has become one of the largest and fastest-growing advertising products on YouTube," Schindler said.

"I'm very pleased with this progress and we will continue to make disciplined investments to expand the scale of the business and improve profitability," Sundar Pichai, chief executive of Google and Alphabet, said on the earnings call.