Google’s parent company, Alphabet, broke its fourth quarter estimates for 2020 thanks to strong ad spending over the holidays.
Analysts expected revenue to be $53.133 billion, according to IBES data from Refinitiv. The Alphabet broke this, reporting revenue of $56.9 billion.
The Alphabet Advertising business, which includes YouTube, saw a 23% increase in sales a year ago. It currently accounts for 81% of total sales.
“We’ve seen you get a lot of money,” said Philipp Schindler, Google’s Chief Business Officer, over the phone: Our brand business was hit hard during the early stages of the pandemic, but was rebounded in the third and fourth quarters. It really helps advertisers reach younger audiences. ”
“We are now 18-49 years old than all linear television networks combined. The direct reaction business on YouTube was virtually nonexistent three years ago. Now it’s YouTube “It’s one of our biggest and fastest growing advertising offerings,” he added.
Strong results from the alphabet come when growth was slow at the start of the pandemic. Haris Anwar, senior analyst at Investing.com, commented: This robust shift in this business should distract investors for the time being. ”
Alphabet’s shares rose more than 7% after trading, following the group’s earnings report.
