Google Q3 Earnings: Youtube earnings are downs and ad revenue up

Google Q3 Earnings were published today and users searched for “Youtube, ads” words. It is considered a big “meh” overall, so please follow this article to understand this report. 

Youtube And Ad Revenue Report

Youtube’s earnings decreased by about 2%, from $7.21 billion to $7.07 billion. For example, analysts had expected an increase of approximately 3%. This is the first-ever decrease since Google started reporting.

Missing the ad mark: Search ad sales rose 4% to $39.5 billion. Many analysts expected revenue of 4 41 billion. Google CFO Ruth Porat said, “The modest growth was due to complicated comparisons to the unusually strong quarter a year earlier”. This is a trend she said in the fourth quarter.

Moreover, Philipp Schindler, CBO, Google said “Google saw advertising pullbacks in loan, crypto categories”.

New products and features from Google

New services and developments in Google Q3. Google’s Search on the event, some new products, and features were rolled out, consisting of:

• Multisearch expansion. Multisearch helps you to use the camera’s phone to search by an image. And it is powered by Google Lens which adds an additional text query to the image search. Google will use the image and the text query to show the visual search results.
• Search refinements. Google shows a tappable world to apply the query on this fly. It is a form of a query builder by just tapping on each word.
• Expanded visual information. Google shows your visual stories, videos, tips, different things to do and especially depending on the query.
• Search with the word Shop. To be more specific, in the United States, you search the word “shop” followed by different items you look for. You will access a visual feed of some products, tools, and inventory for the product.
• Shop in 3D. To give merchants or advertisers access to 3D visuals, Google launched a new automated 360-degree spin feature. This function is accessed by applying static photos.
• Complex purchase buying guide. A new buying guide can share useful insights about each category from various trusted resources.
• Personalized results. When you shop on Google, you can make different selections on preferred stores and brands to see in the future.

What Google said

Sundar Pichai, CEO of Alphabet and Google, said that we were sharpening the focus on a clear set of different product and business priorities. Announcements about products we have made in the past month have shown that it is clear consisting of dramatic improvements to Search and Cloud, powered by AI, and some new ways to earn money from Youtube Shorts. We focus on investing responsibly for the long term and are responsive to the economic environment.

Moreover, advertisers and companies pull back budgets amid increasing inflation and interest rates. In Google Q3 and Microsoft FY23 Q1 earnings calls, departments blamed the decrease on advertisers pulling back. Microsoft CFO Amy Hood also said that “reductions on advertising spend which can weaken later in a quarter, affected search in advertising and LinkedIn marketing solutions.”

Besides, Google Q3 showed slow growth, which is a warning to advertisers that further budgets could be cut and higher CPCs were on the horizon. Google stresses Youtube Shorts and CTV placements, so they could hint at what’s to occur.

The holidays historically bring additional revenue for the ad platforms, but with an unstable economy, this year is anyone’s discussion and guess.

Give it a try today! With the useful information about Google Q3 Earnings for merchants that EverRanks has compiled above, hopefully, you will be able to make the most of this and gain more conversions for your business.