Retail Ad Spend Bolsters Google Earnings As Anti-trust Suits Loom
June quarter sales for Google’s parent company Alphabet flew by Wall Street estimates as retailers turn to its online advertising ecosystem to bolster their e-commerce offerings.
Revenue (excluding distribution partner payments), was around $51 billion for the quarter, according to the company. this far surpassed analyst estimates of $46.1 billion.
YouTube ad revenue jumped 84 per cent to $7 billion, ahead of estimates of $6.33 billion.
This comes as the company looks on target to close out 2021 with 29 per cent of the global digital advertising market.
The sales growth reflected “elevated consumer online activity and broad-based strength in advertiser spend,” according to CFO Ruth Porat.
It is also a reflection of the company’s dominance in the sector, which has troubled antitrust regulators around the world, with four lawsuits currently on the boil, including one from the US Justice Department.
Unlike Microsoft and Apple, whose shares dropped following their announcements, Alphabet shares jumped 3 per cent in extended trading, closing at $2,638 with a 50 per cent jump this year.