Daily Management Review

Google sets 14-year record for quarterly sales


Google reported its biggest sales growth in 14 years and nearly doubled its profits in the third quarter. The company appears to have been little affected by Apple's changes to its iOS app privacy policy, with smaller companies investing in digital advertising aimed at online shoppers.

Google (owned by Alphabet) has reported its highest quarterly revenue growth in 14 years. Over the past year, the search giant has delivered quarterly growth previously seen in only two years, driven by advertising sales, The Wall Street Journal reported. 

The newspaper notes that the pandemic has changed Google's core advertising business, with smaller companies investing in digital ads aimed at online shoppers. As offline shop traffic plummeted, marketers turned to Google to promote their products. Parent company Alphabet reported on Tuesday, October 27, that Google's revenue rose 41% to $65.12 billion. The company posted a profit of $21.03 billion, nearly three times its financial performance before the pandemic.

Global digital ad spending will grow 26% this year, up from previous forecasts of 15%, according to GroupM, which studies the media advertising market.  Much of that will go to Google, which has a dominant share of Internet search queries worldwide, digital navigation and online video viewing (it owns the video service YouTube). Google's advertising business brought in $53.13 billion in revenue, up 43% from the same period last year ($37.1 billion). 

Much of Google's growth came from e-commerce advertisers looking to reach customers who search for products online. The company teamed up with Shopify this year to simplify search ads and ad buying for 1.7 million merchants. These efforts have led to retail advertising becoming the biggest area of growth for Google's business.

source: wsj.com