Google search revenue rises 5%, slight increase in total ad revenue

Alphabet Inc., Google’s parent company, reported higher advertising revenue in the second quarter of 2023, year on year.

A 2% gain in search revenue was accompanied by an increase in revenue for YouTube ads (4.4%).

However, Google’s advertising network was down 5%.

ad products
  • “Our financial results reflect continued resilience in Search, with an acceleration of revenue growth in both Search and YouTube,” said Alphabet Chief Financial Officer Ruth Porat.

Although results surpassed expectations, the single-digit growth percentages suggest that digital ad spend has yet to fully recover to its former glory. Experts predict that this should happen in Q4 of 2023.

Why we care. The better-than-expected performance might suggest that confidence and trust in digital advertising is finally stabilizing following the economic downturn. This is great news for digital advertisers as it suggests ad spend is set to grow as we look toward the hugely important holiday period in Q4.

Leadership in AI. Google’s ad revenue increased by $1.85 billion from the previous year, while YouTube ad revenue was $7.67 billion, up from $7.34 billion in 2022.

Google’s Chief Business Officer, Philipp Schindler, added that the company will continue to invest heavily into AI as the business enters into its seventh year as an AI-first company.

  • “Generative Ai is supercharging new and existing ad products. We’re helping advertisers to make better decisions, solve problems and enhance creativity. I’m very excited about AI,” Schindler said.

Stepping down. Alphabet confirmed in its Q2 financial announcement that Porart, who has been with Google for eight years, will be stepping down as CFO. On September, she will take on the newly-created position of president and chief investment officer.

In her new role, Porart will be responsible for Alphabet’s “other bets” and will continue working closely with CEO Pichai. She will be responsible for strengthening the company’s relationships with policy-makers and helping shape its corporate investments to have a maximum economic impact.

Earnings report. You can read Alphabet’s full second quarter 2023 results report for more information.

The post Google search revenue rises 5%, slight increase in total ad revenue appeared first on Search Engine Land.

Original source: https://searchengineland.com/google-search-revenue-rises-5-slight-increase-total-ad-revenue-429861

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