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Alphabet records $33.7 bn revenue in Q3

Alphabet Inc.’s revenues were $33.7 billion, up 21 per cent versus the third quarter of 2017, for the quarter ended September 30, 2018.

“Our business continues to have strong momentum globally, led by mobile search and our many products that help billions of people every day and we remain focused on delivering on the opportunities we see,” said Ruth Porat, Chief Financial Officer of Alphabet and Google.

Google’s revenues in the third quarter continued to benefit from ongoing strength in mobile search with important contributions from YouTube, cloud and desktop search, resulting in consolidated revenues of $33.7 billion, up 21 per cent year-on-year and up 22 per cent in constant currency.

APAC revenues were $5.4 billion, up 29 per cent versus last year and up 30 per cent in constant currency.

Sundar Pichai, CEO, Google said, “We had a great quarter, and it was particularly special because last month, we celebrated Google’s 20th birthday and the 10th birthday of Chrome. It’s exciting to think that 20 years in, we are still just at the beginning of what’s possible. We get billions of questions from users every day and about 15 per cent of those are queries we have never seen before.”

Speaking on the advertising business, he said, “YouTube’s Ask business continues to provide great results for marketers and creators. At Advertising Week, we announced that we’ll be expanding our popular TrueView for actions format. This helps users take action directly from video ads. They can now do things like sign up for a newsletter and soon they’ll be able to find movie show times, download apps or even book a trip right from the app.”

In terms of dollar growth, results were led again by mobile search, with a strong contribution from YouTube followed by desktop search. Network revenues were $4.9 billion, up 13 per cent year-on-year reflecting the ongoing momentum of AdMob and programmatic.

“Advertisers love that we are bringing our machine learning strengths to offerings like responsive search ads and universal App Campaigns to create more effective ads. One new example is Smart Shopping Campaigns which use signals like seasonality and price to optimise where ads are shown. Tens of thousands of advertisers are using this and seeing an average of 20 per cent more sales for the same budget,” Mr Pichai added.

Shubhi Tandon

Shubhi Tandon is the Assistant Editor at Digital Market Asia. Fascinated by the evolving digital media industry, she has focussed on tracking developments in the Asia Pacific market since 2014.