Alphabet’s overall revenue increased by 15% to $80 billion, much higher than last year’s 3% year-on-year increase.
By the numbers. Google Search revenue increased by 14% to $46 billion YoY in Q1 2024 compared to $40 billion in Q1 2023.
This led to overall Google advertising revenue increasing by 13% to $61 billion YoY in Q1 2024 compared to $54.5 billion in Q1 2023.
The highest jump in advertising revenue came from YouTube which was at $8 billion, a 20% increase in revenue from $6.6 billion in Q1 of 2023.
Google’s deliberate crackdown on ad blockers in the past year helped this increase.
Google Network revenue decreased slightly by 1% to $7.4 billion holding back a higher increase in advertising revenue.
More AI coming. The adoption of Google’s AI solutions has been increasing, as discussed in Tinuiti’s Digital Ads Benchmark report. Philipp Schindler, Alphabet’s senior vice president and chief business officer, highlighted some of Google’s AI innovation in Performance Max and automatically created assets during Alphabet’s Q1 2024 earnings call:
“In February, we rolled Gemini into PMax. It’s helping curate and generate text and image assets so businesses can meet PMax asset requirements instantly.”
“This is available to all U.S. advertisers and starting to roll out internationally in English, and early results are encouraging. Advertisers using PMax asset generation are 63% more likely to publish a campaign with good or excellent ad strength. And those who improved their PMax ad strength to excellent see 6% more conversions on average.”
“We’re also driving improved results for businesses opting into automatically created assets, which are supercharged with gen AI. Those adopting ACA see, on average, 5% more conversions at a similar cost per conversion in Search and Performance Max campaigns.”
Why we care. A higher jump in revenue this year indicates a healthy adoption of Google’s automation and a better understanding of how to make the most of it. This puts advertisers in a better position to adapt to Google’s next introductions of AI functionality
Earnings report. You can read Alphabet’s complete first-quarter 2024 results report.
