Alphabet’s global revenue rose 15% to $80 billion, up from last year’s 3% year-over-year increase.
By the numbers. Google Search revenue rose 14% to $46 billion annually in the first quarter of 2024 compared to $40 billion in the first quarter of 2023.
This caused Google’s overall advertising revenue to rise 13% to $61 billion annually in the first quarter of 2024, compared to $54.5 billion in the first quarter of 2023.
The biggest jump in ad revenue came from YouTube, which was $8 billion, a 20% increase in revenue from $6.6 billion in the first quarter of 2023.
Google’s network revenue fell slightly 1% to $7.4 billion, curbing a higher increase in ad revenue.
More AI to come. Adoption of Google’s AI solutions has been on the rise, as discussed in Tinuiti’s Digital Ads Benchmark Report. Philipp Schindler, Alphabet’s senior vice president and chief business officer, highlighted some of Google’s AI innovations in Performance Max and automatically created assets during Alphabet’s Q1 2024 earnings call:
“In February, we added Gemini to PMax. It helps curate and generate text and image assets so businesses can meet PMax asset requirements instantly. “This is available to all US advertisers and starts at to roll out internationally in English, and the first results are encouraging. Advertisers using PMax asset generation are 63% more likely to run a campaign with good or excellent ad performance. And those who have upgraded their PMax ad power to excellent see 6% more conversions on average.” “We’re also driving improved results for businesses that opt for auto-created, AI-powered assets of generation ACA adopters see, on average, 5% more conversions at a cost per conversion similar to search and peak performance campaigns.”
Why we care A bigger jump in revenue this year indicates strong adoption of Google’s automation and a better understanding of how to get the most out of it. This puts advertisers in a better position to adapt to Google’s upcoming introductions of AI functionality
Earnings report. You can read the alphabet full first quarter Results report 2024.
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About the author
Anu Adegbola has been a paid media editor for Search Engine Land since 2024. She covers paid search, paid social media, retail media, video and more.
In 2008, Anu’s career began with
deliver digital marketing campaigns (mainly but not exclusively Paid Search) by creating strategies, maximizing ROI, automating repetitive processes and making all marketing departments efficient through inspiring leadership both on the agency, client and marketing technology side.
Outside of Search Engine Land article editing, she is the founder of the PPC networking event: PPC Live, host of weekly podcast PPCChat Roundup, ibRand Evangelist at ClickTech.
He is also an international speaker with some of the stages he has presented being SMX (USA), SMX (Munich), Friends of Search (Amsterdam), brightonSEO, The Marketing Meetup, HeroConf (PPC Hero), SearchLove, BiddableWorld, SESLondon, PPC Live Chat, AdWorld Experience (Bologna) and more.
