RECORD PROFITS FOR GOOGLE

WITH ADVERTISING

At a time when part of the world is partly frozen by the Covid-19 pandemic, advertising, Google's real engine, has been running at full speed, with a "titanic quarter" from January to March 2021, according to experts .

Google therefore records record profits thanks to advertising.

Also thanks to its ability to capitalize on the new habits of its users, the search engine seems to ensure an equally favorable exit from the health crisis.

The online search giant thus achieved

55.31 billion in turnover from January to March, or 34% more than a year ago, when the emergence of the Covid-19 pandemic had caused drop the spending of some advertisers, particularly in the travel sector, at the end of the first quarter.

On the search engine, advertising revenue rose from $ 25 billion to $ 32 billion in one year, well beyond expectations, and it grew 50% on YouTube, to $ 6 billion.

In 2020, as consumers deserted physical stores, Google and Facebook accelerated the development of ad formats that make shopping easier, with buttons directly in ads or videos to redirect users to brands.

"Google makes money"

"The line between digital and physical is blurring and we are innovating on all channels" of distribution, detailed Mr. Schindler. “It's not just online, it's not just offline. It's a mix. And that is our strong point, at the conjunction of Search (the search engine), Maps and YouTube. "

The Californian group manages in any case to ride the wave of recovery. It is "well on its way to generating 130.15 billion in net advertising revenue in 2021, an increase of 25% over one year", estimates the firm E-Marketer, which attributes 28.6% of the market share to it, just ahead of Facebook.

“Basically Google makes money, the company is pretty much all about ads,” commented analyst Rob Enderle. "There is no risk of declining revenues unless regulators intervene."

Abuse of dominant position

It seems it is the only cloud on the horizon for Alphabet, the parent company.

The current year could indeed be marked by developments in the fight against certain practices of technological leaders, deemed anti-competitive by more and more governments, including that of Joe Biden in the United States.

Facebook and Google are already facing lawsuits from the authorities on the competition law front. Several digital platforms, such as Amazon, TripAdvisor or Yelp, complain that Google promotes its own offers in search results.