Google ad revenues up despite net income dip

Mobile and YouTube showed the highest rates of growth.

Google ad revenues up despite net income dip

Google’s advertising revenues has surged to $33B for Q3 2019, contributing to its parent company Alphabet’s 20 percent year over year revenue rise to $40.4B.

"I am extremely pleased with the progress we made across the board in the third quarter, from our recent advancements in search and quantum computing to our strong revenue growth driven by mobile search, YouTube and Cloud," said Sundar Pichai, chief executive officer of Google.

The majority of Alphabet’s revenue has historically come from advertising. 

Google’s Q3 advertising revenues for Q3 rose by roughly 17 percent from the same three month period in 2018.

Despite this, Alphabet’s net income for the quarter was $7B, down from $9B recorded in Q3 2018. 

According to marketing solutions firm, Merkle, spending on Google search ads by major tech players grew 16 percent in Q3 2019, up from 15 percent in Q2 2019. 

Mobile has also been a growing segment for tech companies spending on Google ads, according to Mark Ballard, VP of research at Merkle. 

"Mobile has been a key point, far outpacing desktop as far as advertising spending growth," he said. 

He also noted that Google U.S. ad search spend had begun to show signs of growth after nearly two years of deceleration. 

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