However, there are certain advertising growth opportunities that stand out in Google’s revenue.
The big ones are retail and e-commerce.
Chief Business Officer Philip Schindler said retailers were the company’s largest growth driver in paid search revenue, jumping from about $ 16.2 billion in the second quarter of 2020 to $ 29.2 billion. Retail also contributed significantly to the overall increase in advertising.
According to Schindler, Google Cloud Platform is adopting many new retail clients. These retailers are developing increasingly valuable search businesses as more customers shop online. He also pointed out integrations with e-commerce site operators and payment processors: Shopify, Square, GoDaddy and WooCommerce last quarter.
“There’s a lot of room for e-commerce on YouTube,” said CEO Sundar Pichai. In the second quarter, the company allowed YouTube sellers or creators to upload product catalogs that appear with content. Payment processing partners or Google can convert instant sales.
YouTube itself is the main growth channel. YouTube’s second-quarter advertising revenue surged from $ 3.8 billion last year to $ 7 billion.
Apart from the shopping integration, more than 120 million people watched YouTube on their smart TVs this quarter, Schindler said. This is an increase from 100 million a year ago.
“CTV is the fastest growing consumer service we have,” he said.
Google also emphasized partnerships with creators and publishers. In the last three months, Google has paid YouTube creators more than any other quarter, according to Pichai. Google also sent more traffic to third-party sites in the network than in the previous quarter. Given that the summer season of the second quarter is usually not the busiest period on the Internet, it is a sign of strong growth.
Schindler says that despite the significant increase in search revenue already this year, the results are still poor, especially in the commerce space. Sponsored product advertising, which drives Google’s search revenue, is one of the areas of recent success. Google is also in a position to pull in the retail marketing budget historically spent on coupon campaigns and local store sales.
“89% of commerce is still done offline,” he said. “There is still room to leverage the budget that was traditionally used for local advertising, etc.”
Google cruises the resurgence of digital advertising and the interests of retail clients
Source link Google cruises the resurgence of digital advertising and the interests of retail clients