After the end of our first detention in France, we felt that the disaster for the digital advertising actors could be avoided. This time around we have proof of that with the latest third quarter results released by the parent company of Google that are simply impressive. Ultimate proof that the digital giants are not bothered by the unstable health context.
A masterful third trimester “driven by the pandemic”
All the web giants seem to be in the same position. Amazon, Snapchat reaching new heights, or even Pinterest, which are clearly taking advantage of the epidemic to increase their platform’s engagement and revenue. Google saw very strong growth in the third quarter of 2020. Google’s parent company, Alphabet, had sales for the quarter of 39.66 billion euros. This corresponds to a growth of 14.01% compared to the previous year. This is much more than what analysts predict. Unsurprisingly, advertising boosted Alphabet’s revenue.
In the same category
MDBC: Everything You Need to Know About Tomorrow’s Digital Currency
We find YouTube among the services that are taking up more and more space at Alphabet. If digital advertising appears to remain the main source of income for Alphabet on Google (80%), the video social network is doing fine. YouTube Years (Advertising broadcast on the platform is a key source of growth in advertising revenue for the company. This revenue is 4.31 billion euros in the third quarter alone, compared to 3.25 billion euros in the third quarter of last year, according to Sundar Pichai, CEO from Google: “This quarter’s results are consistent with the current online environment.”
The “small products” from Google stand out
In addition to YouTube and Google, other products in the huge alphabet have also grown significantly. This is the case, for example, with the activity of Google Cloud, which increased from 2.05 billion euros in the third quarter of 2019 to 2.95 billion dollars this year, representing a growth of 44.8%. . In this context, Alphabet has promised to deliver more detailed results on its cloud division by the end of 2020.
Other sales categories are Google Pixel smartphones, Pixelbooks and Google Nest products. If we add up all of the American giant’s revenue, we get a year-over-year growth of 22.19% in the third quarter. Sundar Pichai isn’t afraid to say, “We had a good neighborhood”. Results consistent with context. Let’s not forget that this quarter was cut by a record € 1.5 billion fine imposed by the European Commission a few months ago.