Alphabet, which is Google’s parent company, recently announced that it saw an increase in revenue of 24% year-on-year (yoy) from around US$22.45 billion in 2016 to US$27.77 billion this year. Out of the total revenue, Google contributed to US$27.47 billion, an increase from last year’s US$22.25 billion. Advertising revenue was at US$22.04 billion, up from US$19.82 billion from last year. Meanwhile Alphabet’s balance sheets revealed that its APAC revenue was at around US$4.20 billion, according to generally accepted accounting principles.
This year February, Google agreed to third party auditing by Media Rating council of its YouTube ad inventory and ad buying platforms. In that same period, YouTube also did away with its thirty second unskippable ad format. Later on in September, YouTube launched new tools that would help brands capture consumers attention on its platforms. These tools included “Video Ad Sequencing”, “Custom Affinity Audiences” and “Director Mix”.
According to Bloomberg, Alphabet reported a good performance from Google’s YouTube video platform and cloud business. The report also added that YouTube garnered 100 million viewing hours per day in the living room, which was a 70% increase from last year. A key focus for investors also included Google’s traffic acquisition costs (TAC), as well as payments to phone-makers and web browser makes which run Google search and ads.
Total TAC came to about US$5.50 billion this year, up from US$4.18 billion last year. The total TAC made up 23% of Google’s advertising revenue, up from 21% last year. In the Bloomberg report, Ruth Porat, CFO of Alphabet, attributed the growth of TAC to wider adoption of mobile devices. During a press statement on the financial results, Porat said that the results reflect strength across Google and other bets. She added that the momentum was a result of “investments over many years in fantastic people, products and partnerships.”