Alphabet, the Google parent company has observed a 14 percent increase in the third quarter from the earlier year. This increase is due to the advertising revenue from both YouTube and Google. YouTube has brought around $5 billion in advertising revenue in the third quarter of 2020. It is a signal showing that advertisers who pushed back advertising spend due to the pandemic have reset to the normal in the third quarter.
YouTube brings in $5 billion in advertising revenue with a strong increase in subscriber base
YouTube now has almost 30 million music and premium paid subscribers. Also, YouTube TV has three million subscribers, which is quite strong since YouTube TV announced a monthly increase from $50 to $64.99 in June. Guided meditation videos have reported a 40 percent increase since March whereas, the DIY mask tutorials have received closed one billion views.
Ruth Porat, the Alphabet, and Google CFO said that they are pleased with the advertisers reactivating their budgets in the third quarter. She stated that it showed the customer’s growing demand across all verticals. The company has invested in content moderation to ensure a positive experience for both creators and users.
This year along with the current quarter shows how Google’s product search helped people, says Pichai
Google’s advertising division has reported a revenue of $37.1 billion which, is an increase from $34 billion last year. On an investor call, Google CEO Sundar Pichai said that this year along with the current quarter shows how Google’s search has helped people.
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The other departments of the search giant such as hardware, cloud services, and the Play Store have reported revenue of $46.2 billion. Other segments like Waymo and Verily have reported revenue of $178 million, remaining money losers for the company.
Google to split cloud division as a separate reporting segment in the next quarter
The cloud division had a revenue of $3.44 billion, up from $2.3 billion a year ago. It Search platform had revenue of $26.3 billion. Pichai stated that customers are now moving to the cloud to get better efficiency and lower IT costs. He added that the future of work is developing significant growth for Google’s cloud products.
Pichai said that in the next quarter, Google will split its cloud division as a separate reporting segment. Also, Google Meet, the company’s videoconferencing platform, has reported 235 million daily meetings and around 7.5 billion daily video calls.