While shoppers are returning to physical stores, the company’s also seeing ‘strong growth in local shopping queries’ at the same time.
41% year-over-year growth. Revenues for Google’s parent company, Alphabet, went up a whopping 41% YoY according to the report, with ad revenues driving $51.3 out of the $65.1 billion. Google attributed the continued increases to its big push for commerce in Q3 (and before) in the earnings call. Along with the investment in commerce, Google is offering even more options for advertisers who are seeing a return to in-person shopping, especially as the holiday season nears.
YouTube is the breakout star. “YouTube advertising revenues reached $7.2bn, an increase of 43% from the previous quarter thanks to both direct response and brand advertising,” reported John Glenday for The Drum. This is the result of YouTube’s CTV (connected TV) advertising increases and its competitive product Shorts, which competes with the likes of TikTok and Snap. This increase is a big deal since Apple’s App Tracking Transparency had the potential to affect YouTube similarly to other video social media apps.
Google revenues not affected by legal troubles. Recent lawsuits and controversy with documents being unsealed in those cases don’t seem to be harming the company’s revenues or usage of their products. These controversies include the allegations that the company throttled non-AMP pages, which it “claimed would ‘dramatically improve’ mobile web performance when it launched in 2015, was in fact a scheme to coerce publishers into using the format in order to limit advertising dollars not spent on its own ad exchanges.” Plus, there is a history of alleged collusion with Facebook to “kill header bidding” and essentially rig the ad market in the tech giants’ favor.
Why we care. “Google chief business officer Philipp Schindler explained on the call that while shoppers are returning to physical stores, the company’s also seeing ‘strong growth in local shopping queries’ at the same time,” said Sean Hollister for The Verge. Advertisers can expect to see the continued shift in local and omnichannel search marketing strategies, so if you’re not preparing yet, it’s something to consider for your 2022 strategy.
On the power dynamics side, Search Engine Land has written multiple times before about the juggernaut that Google has become. Many search marketers are aware of (and not surprised by) the moves the company has allegedly made, and many believe we just have to operate in this environment since we lack the control to change it. However, we can still exercise our power to do good in the industry via constant feedback.