The search engine’s parent, Alphabet Inc., disclosed second-quarter financial results that showed advertising revenue from Google of $22.67 billion, a 15.6 percent increase over the same period last year.
Revenue from advertising made up a large majority of Alphabet’s total revenue for the quarter, which came in at $26.01 billion, a 21 percent increase. The company’s net income, however, fell 27.7 percent to $3.52 billion.
Shares of Alphabet declined more than 3 percent in after-hours trading to $968.28.
Ruth Porat, Alphabet’s chief financial officer, said during a call with investors that the second-quarter results show the company’s “strong momentum” as well as Google’s continued success with mobile.
“Advertising revenues benefited from a strong performance led in particular by tremendous results in mobile search with a strong contribution from YouTube,” Porat said.
She also said new ad formats and “bidding features” are set to be launched soon, noting that 90 percent of consumer purchases still happen offline.
“We want to help consumers find what they’re looking for in bricks-and-mortar stores,” Porat said. “Our store-visits technology is instrumental in understanding customer behavior that starts online and ends in store.”
With its “store-visits” technology, Alphabet said it has measured 5 billion visits in multiple countries, allowing it to further localize ads.
The bottom line was hurt by a 2.4 billion euro fine imposed in June against Google by the European Union’s Antitrust Commission, which found the search engine had favored products that advertised with it over others that didn’t, regardless of price.
That decision also included a demand that Google alter its current algorithm to be more fair in the eyes of the European Commission, which could affect its growth Europe. Alphabet reported Europe the Middle East and Asia as a single block showing revenue up 14 percent to $8.5 billion.
Looking ahead, Google is set to soon launch a tool for marketers and advertisers that lets them “measure the impact of their campaigns across devices and channels” for free, and the company will be launching new Google products in Sub-Saharan Africa.
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