Google and Online Advertising: Its Latest Results Do Not Meet Expectations

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Weeks of financial results in the tech industry, results that also help to better understand what is happening with the advertising market and with the Internet market in general. The last one that has had the turn has been Google and, although the company has presented high figures, it has not met expectations and, above all, has given an amount that invites analysis in terms of advertising it means.Alphabet, the parent company of Google and the corporate name for some years now, has closed the last quarter with what has been, as Reuters recalls , the lowest growth in revenue in the last three years.It has taken its toll on Google that its smartphone business has not yet taken off, the changes made to YouTube and also (and this is the most interesting point for the advertising industry) the growing competition in the advertising universe.

However, as they point out in the E-Mail-Datenbank kaufen Reuters analysis , things can be seen more clearly: on the one hand there would be the increasing pressure of advertisers on YouTube (they want to have more control over how and where their advertising appears) and on the other the fact that Google, remember, has not yet found the best advertising formats and those that work best on mobile devices and emerging markets, whether geographical or by support (such as smart speakers). And this is a problem for the company because 85% of its revenue comes directly from ads.

To all this, analysts add another issue. The advertising business will have to assume certain higher costs in the future as the authorities of the different countries put in place regulations that require much more control over consumer privacy.That's what analysts at least conclude, because Alphabet CFO Ruth Porat told the investor conference that the slowdown in growth was due to currency fluctuations, competition and unspecified changes in products.