Google’s parent company, Alphabet, announced its first quarter 2021 results at the end of April and, like Facebook’s, they show that big tech has flourished on the back of digital marketing during the COVID-19 pandemic. The company’s total revenue was $55.31 billion, up from $41.16 billion during last year’s COVID-altered first quarter and better than the $51.7 billion analysts had predicted. Google’s revenue alone increased from $33.76 billion in 2020 to $44.68 billion, up 34 per cent.
“Over the last year, people have turned to Google Search and many online services to stay informed, connected and entertained,” said Google and Alphabet CEO Sundar Pichai in a company release. “We’ve continued our focus on delivering trusted services to help people around the world. Our Cloud services are helping businesses, big and small, accelerate their digital transformations.”
Google’s massive reported revenue and profits ($18 billion) during Q1 should come as no surprise. Much of the world has become more reliant on large tech companies’ products and services over the past year, both from a business and entertainment perspective. That means more people using Google’s Cloud services (revenues of $4.0 billion), more people seeking information on Google Search, and significantly more people spending time on YouTube.
Indeed, Alphabet reported YouTube usage growth from 73 per cent of US adults in 2019 to 81 per cent in 2021, and its TikTok competitor, Shorts, attracted 6.5 billion daily views recently, up from 3.5 billion at the end of January. Those metrics have translated to massive revenue growth: YouTube ads brought in $6.01 billion in Q1, up 49 per cent year over year.
What all of this means for businesses is that Alphabet’s advertising products, especially Google Ads and YouTube Advertising, offer more potential visibility today than ever before. As a Google Premier Partner digital marketing agency, GrowthEngine Media has years of experience launching and managing campaigns using Google’s products – contact us today to learn more.