Alphabet Inc., the parent company of Google, reported record advertising revenue of $65.52 billion in the fourth quarter of 2023, year over year.
A 12.7% increase in search revenue was accompanied by a strong 15.5% increase in YouTube ad revenue.
Google’s ad network was down slightly by 2.1%, but that was an improvement over the 2.6% loss recorded in the third quarter of 2023.
“We ended 2023 with very strong fourth quarter financial results, with fourth quarter consolidated revenue of $86 billion, up 13% year-over-year. We remain committed to our work to sustainably redesign our cost base as we invest to support our growth opportunities,” said Ruth Porat, president and chief investment officer of Alphabet.
Google’s ad revenue was up $6.48 billion from a year earlier, while YouTube’s ad revenue was $9.2 billion, up from $8 billion in 2022.
Alphabet had its best sales in the fourth quarter, reaching $86.3 billion. This not only topped the previous record of $76.7 billion, but also beat what analysts had forecast at $85.3 billion. The company’s ad revenue is growing strongly again, showing that digital advertising is recovering after a rough start to 2023.
Why we care. The record results suggest brands are allocating more budget to Google, reaffirming its status as the advertising platform of choice. Increased popularity means possible increases in advertising costs on Google and increased competition in auctions, which can affect the reach and effectiveness of your campaigns.
What Google says. CEO Sundar Pichai said in a statement:
“We are pleased with the current strength of search and the growing contribution of YouTube and Cloud. Each is already benefiting from our investments and innovation in AI. As we enter the Gemini era, the best is yet to come to come.”
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Earnings report. You can read the entire alphabet results for the fourth quarter of 2023 report for more information.
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