Google’s umbrella company Alphabet generated 14 percent more revenue in the third quarter compared to the previous year, thanks to the advertising performance of Google and YouTube. YouTube put $ 5 billion in ad revenue in the company’s coffers in the third quarter of the year. This means that brands have resumed their advertising spending cut after the coronavirus.
The number of subscribers for YouTube’s music and Premium packages exceeded 30 million. This number increases to 35 million when free trials are included. YouTube TV’s number of subscribers has reached 3 million. Considering that YouTube TV’s monthly fee increased from $ 50 to $ 64.99 in June, this increase makes a little more sense.
It has been stated that the number of watching meditation videos on YouTube has increased by 40 percent since March, while the number of views of videos showing how to make a face mask at home has exceeded 1 billion.
Alphabet and Google’s chief financial officer Ruth Porat said: “It is gratifying that advertisers have started using their budgets again as of the third quarter. Consumers are also showing strong demand in almost all areas. The increase in watch time for YouTube gives brands the opportunity to reach audiences they cannot reach on TV. Investments in content moderation have also had a positive impact on both users and content owners. ”
Revenues of Google’s ad unit reached $ 37.1 billion as of the third quarter of the year. This amount was around 34 billion dollars in the same period last year. YouTube’s advertising revenue also increased by 30 percent compared to the same period of the previous year.
Alphabet and Google CEO Sundar Pichai: the value of search realized this year
Alphabet and Google CEO Sundar Pichai stated that 2020 shows how valuable Google’s search service is, its founding product.
Google’s revenues fell in the second quarter of 2020 for the first time in its history. The company posted $ 46.2 billion in revenue and $ 11.24 billion in net income for the third quarter. The revenues of Google’s “Other” department, which includes hardware, cloud services and Play Store, increased from $ 4 billion to $ 5.4 billion. The revenue of its unit, which includes Waymo and Verily, was $ 178 million. However, the loss of this unit is around 1.1 billion dollars.
The revenue of the company’s Cloud unit increased from $ 2.3 billion a year ago to $ 3.44 billion. The revenue of the exploration unit increased from $ 24.7 billion to $ 26.3 billion. Sundar Pichai pointed out that companies are turning to the cloud in order to increase efficiency and reduce IT costs. Google also announced that it will report the cloud unit separately from the next quarter.
Alphabet and Google CEO also informed that 235 million meetings and 7.5 billion video calls are held every day on Google Meet.