Google Parent Alphabet Reports Strong Results on Mobile Ads, YouTube, Other Bets

Google Parent Alphabet Reports Strong Results on Mobile Ads, YouTube, Other Bets

Google’s parent company Alphabet on Thursday reported profit in the recently-ended quarter leapt as money poured in from ads delivered to mobile devices and returns improved on “other bets.”

Alphabet profit was up 32.4 percent to $6.7 billion (roughly Rs. 43,555 crores) on in the quarter on revenue that increased 24 percent to $27.8 billion (roughly Rs. 1,80,724 crores), up 24 percent from the same period a year earlier.

Chief financial officer Ruth Porat credited “strength across Google and Other Bets.”

The earnings topped market expectations, and Alphabet shares jumped in after-market trade on the Nasdaq exchange before concerns about growing expenses apparently caused them to settle back a bit to be up nearly 3 percent to $1,021.

“It is what everybody looks at every time: what is going on with expenses?” independent analyst Rob Enderle told AFP.

“For the most part they seem to be well managed, but you watch to make sure they remember they still have limits even though they are printing money.”

While mobile ads were a main area of growth, they brought with them higher traffic acquisition costs, pushing up Google expenses in a trend seen as unavoidable.

Investing in cloud services and artificial intelligence also means spending more on data centers to provide the massive computing power involved.

“I’ve been really proud of the progress this quarter; launching popular new products and continuing to grow our business in new areas,” Google chief executive Sundar Pichai said in an earnings call with analysts.

“It’s been particularly exciting to see our early bet on artificial intelligence pay off and go from a research project to something that can solve new problems for 1 billion people a day.”

YouTube continued to see “phenomenal growth” with more than 1.5 billion people spending an average of an hour a day watching videos there on mobile devices, and surging use on television screens in homes, according to Pichai.

He boasted of progress winning businesses over to Google services hosted in the internet cloud, where the company competes with Amazon and Microsoft in that market.

Pichai also said that opening day pre-orders for recently unveiled Pixel 2 smartphones were double that seen for the first-generation Pixel.

Google is “seriously committed to making hardware” as well as working with partners such as South Korean consumer electronics giant Samsung which is a major producer of smartphones powered by Android software made available free by the US Internet company.

“The intersection of hardware and software is how you drive computing forward,” Pichai said.

“I think it’s important we thoughtfully put our opinion forward.”

Smartphones and other devices “made by Google” can showcase the potential of its Android and Chrome software, setting a bar for partners.

Moonshots
A corporate reorganisation started two years ago created Alphabet, which has holdings including cash-engine Google and ventures devoted to innovative “moonshots” such as Waymo self-driving car unit and a Loon project for delivering internet service from high-altitude balloons.

Subsidiaries other than Google were put into an “other bets” group which saw revenue in the quarter rise to $302 million (roughly Rs. 1,963 crores) from $197 million (roughly Rs. 1,280 crores) during the same three-month period last year.

Google ads accounted for the bulk of Alphabet revenue, contributing $27.47 billion (roughly Rs. 1,80,369 crores), according to the earnings release.

Alphabet earlier this year spun off a little-known unit working on geothermal power called Dandelion, which will begin offering residential energy services.

Dandelion chief executive Kathy Hannun said her team had been working for several years “to make it easier and more affordable to heat and cool homes with the clean, free, abundant, and renewable energy source right under our feet,” and that the efforts culminated in the creation of an independent company outside of Alphabet.

Meanwhile, Alphabet’s life sciences unit Verily announced a study to track people for years, right down to their genetics, in a quest for insights into staying healthy.

Alphabet also owns Nest, which recently expanded its line-up of smart home devices to include a security system.

Nest, Fiber, and Verily were said to be top performing other bets in the quarter.

Waymo on Thursday announced plans to begin testing self-driving cars in notoriously troublesome ice and snow conditions in the US state of Michigan this winter.

[“Source-gadgets.ndtv”]

AdSense Unveils a New Look for Mobile Text Ads

Google has given AdSense mobile text ads a sleek new look. In a recent article on the official Inside AdSense blog , the search engine giant has unveiled the new format that “allows for higher performance with a more beautiful and user-friendly appearance.”

The redesigned version has been rolled out on mobile devices, so you should be able to take a look at it right now.

Changes to Ad Appearance

Compared to the previous look, the headline and body copy appear bigger now. Google has also changed the font that makes the ads look more visually appealing than before.

Another key highlight is the text ads now feature elements such as a shaded background and a centered button, which according to Google “bring together the parts of the ad into a cohesive whole.” In the blog post, Clyde Li, AdSense Software Engineer explains that “the look and feel is inspired by material design, like richer text ads” that were launched earlier in 2015.

Looking at the comments left by users on the blog post, it would seem the response to the changes is largely positive.

Facebook Catching On

Google’s latest move to give a new look to text ads on mobile seems largely influenced by Facebook’s growing interest and popularity in this space.

Facebook has been eyeing mobile ads for some time and trying to catch up to Google. Last year, the social networking company reported mobile ads represent 59 percent of its overall ad revenues. For Google, on the other hand, the ride is turning out to be quite bumpy. Even though Google’s ad business grew 16.5 percent in the same quarter, it was less than what was expected.

To stay on top of its game, Google is taking some important steps. In October, the company announced its AMP project to accelerate mobile page loading times. The following month, Google revealed the fast loading mobile pages with ads will be coming in 2016.

The AMP initiative will reduce mobile data usage and curb ad-blockers that have impacted the company’s ad revenue.

The message is pretty clear: Google doesn’t want to lose its share of the mobile advertising pie. Updating the look of mobile ads is probably one of the many changes it has in store. It will be interesting to see what the next move is.

Image: Google

[“source-smallbiztrends”]

Pinterest Introduces Search Ads, Here’s How They Work

Pinterest Search Ads Have Arrived -- Here’s How They Work

Pinterest recently introduced a Search Ads feature with a dozen new clients who will now join a batch of brands including Target, eBay and Home Depot already testing the new service.

“We’re excited to introduce Search Ads on Pinterest: a new way to connect with people searching for your products and services,” said head of global sales John Kaplan in an official post on the Pinterest for Business Blog. “We’re rolling out a full suite of features, including Keyword and Shopping Campaigns that are shown in search results, along with powerful new targeting and reporting options.”

A Look at Pinterest Search Ads

Until now, you could only run Ads using promoted pins, but these ads would only appear alongside relevant searches. Now, with the update, the ads will appear right after someone types in searches.

The ads will run like all PPC campaigns and they will be automatically created from the product inventory, so advertisers will have the option to pay for impressions, pin clicks and engagement.

Additionally, the social network introduced ad groups, which work almost the same way they do on Bing or Google. Bids are optimized at the keyword level, and marketers have the ability to see insights into how users are Pinning images, including the names they are using to save the information.

For now, the service will only be available to a few select advertisers through the Kenshoo platform, but expect this to change in the coming months as additional third-party providers get into the game. It is also highly-likely that at some point Pinterest will introduce a self-service platform.

Pinterest reaches 150 million unique monthly users and sees more than 2 billion searches per month, most of them for services and products people want to buy. The Search Ads update will definitely make the platform even better for advertising.

Image: Pinterest

More in: Pinterest

[“source-smallbiztrends”]

Pinterest Introduces Search Ads, Here’s How They Work

Pinterest Search Ads Have Arrived -- Here’s How They Work

Pinterest recently introduced a Search Ads feature with a dozen new clients who will now join a batch of brands including Target, eBay and Home Depot already testing the new service.

“We’re excited to introduce Search Ads on Pinterest: a new way to connect with people searching for your products and services,” said head of global sales John Kaplan in an official post on the Pinterest for Business Blog. “We’re rolling out a full suite of features, including Keyword and Shopping Campaigns that are shown in search results, along with powerful new targeting and reporting options.”

A Look at Pinterest Search Ads

Until now, you could only run Ads using promoted pins, but these ads would only appear alongside relevant searches. Now, with the update, the ads will appear right after someone types in searches.

The ads will run like all PPC campaigns and they will be automatically created from the product inventory, so advertisers will have the option to pay for impressions, pin clicks and engagement.

Additionally, the social network introduced ad groups, which work almost the same way they do on Bing or Google. Bids are optimized at the keyword level, and marketers have the ability to see insights into how users are Pinning images, including the names they are using to save the information.

For now, the service will only be available to a few select advertisers through the Kenshoo platform, but expect this to change in the coming months as additional third-party providers get into the game. It is also highly-likely that at some point Pinterest will introduce a self-service platform.

Pinterest reaches 150 million unique monthly users and sees more than 2 billion searches per month, most of them for services and products people want to buy. The Search Ads update will definitely make the platform even better for advertising.

Image: Pinterest

More in: Pinterest

[“source-smallbiztrends”]