The Core of Alphabet: Google’s Ads
http://www.themalaymailonline.com/money/article/alphabet-sales-top-estimates-on-ads-while-spending-continues
In October of 2016, Googles revenue and profits outperformed analysts expectations. This was in part to there successful internet ad business. It actually covered a lot of the losses that Alphabet Inc. has experienced making risky investments. The company grew past the projection of $18 million in revenue to $18.3 million.
Some of Alphabet’s “Other Bets” as they call it have lost money and senior executives. Such as their venture into making autonomous cars. Their ad business has helped to offset the spending though. This in part due to Google’s advertisements appearing in YouTube videos. The number of ads clicked on Google’s websites has risen by 42 percent in the last quarter, mainly due to the paid video ads.
Online video contributes the most to the growth of the online ad business and Google has made great use of YouTube to do just that. Chief Financial Officer Ruth Porat said in the statement, “Mobile search and video are powering our core advertising business and we’re excited about the progress of newer businesses in Google and Other Bets.”