YouTube ad revenue has grown by 83.7 percent in one year. In the second quarter of this year, these ads earned Google $7 billion. YouTube ads thus account for 11.3 percent of Alphabet’s total revenue.
Alphabet CEO Sundar Pichai said last quarter saw increased online activity “in many parts of the world,” boosting the company’s sales. The fact that advertisers want to spend more money has also contributed to this. Alphabet’s entire quarterly revenue was $61.9 billion, up 62 percent from a year earlier.
The biggest absolute increase came from Google Search and others. Here, quarterly ad revenue rose $14 billion to $35.85 billion. Ad revenue with Google Network also increased, bringing in a total of $50.44 billion in ads for Google. That is twenty billion dollars more than a year earlier.
Google Cloud revenue increased by more than fifty percent to $4.63 billion. However, this branch does not make a profit; the loss is $591 million. This quarterly loss is getting smaller and smaller; last year it was still 1.426 billion dollars.
In addition to Cloud, ‘Other Bets’ were also loss-making. Other Bets include the sale of Internet services, licenses and R&D services. The turnover from this branch was 192 million dollars; the loss is 1.4 billion dollars. Alphabet as a company is profitable; operating income rose from $6.38 billion a year earlier to $19.36 billion.
This increase is mainly due to Google Services profits more than doubling to $22.3 billion. Google Services includes all kinds of products and services such as Android, Chrome, hardware and YouTube.
