Google Continues To Ride High On Advertising In June Quarter

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Advertising powered Internet giant Alphabet Inc.’s revenue growth in the second quarter, as it has for years now. Revenue at Alphabet—Google’s parent firm, formed in 2015—rose 21% to $21.5 billion in April-June from a year ago. Advertising revenue reached $19.14 billion, a 19% year-on-year (y-o-y) increase.

Says Anshoo Nandwaani, Vice President and Principal Analyst, Greyhound Research: “Falling cost per click is a sign of the times and is set to become more prominent. Advertisers increasingly want to see sales outcomes and companies such as Alphabet (more specifically, Google), InMobi, Facebook, among others, are currently unable to meet this demand. Most ad networks, including Google, are only able to show visibility and clicks. It will get increasingly tougher for ad networks to survive solely on the base of visibility and clicks.”

According to Greyhound Research, Google has done well to step up its presence in India and is serious about its enterprise business in India. It is also aggressively investing in the India Android ecosystem, and adding significant muscle to its mobility offerings besides its commitment to bring 20 million businesses online by 2017 and train over two million Indian developers on Android.

Source: Live Mint

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