Advertising revenues up significantly for Google and Amazon
Yesterday, Prolific London reported that Facebook saw a revenue increase of 28% in the second quarter of 2019. Now, two more internet giants, Google and Amazon, have reported ad revenue growths of 37% and 16% respectively.
In Q2, Google received revenue from advertising worth $32.6 billion (£26.1 billion), and credited the growth in mobile search and YouTube advertising for the year-over-year growth. It came after a Q1 in which Alphabet, which owns Google, registered a slower revenue growth than hoped.
Amazon, during the three months ending on June 30th, saw its advertising revenue grow to $3 billion (£2.4 billion) - at the same time as its subscriptions branch grew 37% to $4.7 billion (£3.7billion). However, it was not all good news, since the retailer missed earnings estimates. It came after the introduction of one-day shipping for Amazon Prime, which was a revenue success but created higher-than-expected costs, which rose 36% to $8.1 billion (£6.5 billion) for shipping alone.
Amazon made a significant commitment to marketing, investing more than $300 million in its marketing operations - a YoY increase of 62%. In all, total revenues at Amazon were up 20% year-on-year to $63.4 billion (£50.8 billion).
While some had expected that content crackdowns and negative press surrounding YouTube and offensive content on the platform might have hit Alphabet's fortunes, this does not seem to have been the case following a successful quarter at Google. Alphabet also spent a grand total of $4.2 billion (£3.4 billion) on sales and marketing in the last quarter alone.