Google advertising mobile

Alphabet-owned Google continued to grab a larger piece of the advertising market and saw its third-quarter revenues from ads shoot up 20-plus percent to more than $22 billion in the quarter ending Sept. 30.

The parent company posted third-quarter net earnings of $5.1 billion, up from $4 billion, on revenue of $22.45 billion.

Alphabet chief financial officer Ruth Porat said that mobile search and video, with strength in YouTube and “important contributions from programmatic advertising and play” were powering the company’s core advertising business. Porat also credited “decent growth” from desktop and tablet search.

Google chief executive officer Sundar Pichai said the last few months had been the busiest time in Google’s history as it transitions into a new era “powered by intelligent assistance and the cloud,” calling it as significant as the move from desktops to mobile devices.

To that end, he said, Google’s advertising business was thriving because mobile sites such as Search, YouTube, Maps and Google Play are “where people turn when they are actively interested in something.”

“Our services are prime time for the mobile world,” Pichai said. “This matters for marketers because those prime-time moments when people are actively interested and attentive are the perfect time for a brand to place their ads.”

Like Facebook, Pinterest, Twitter and others, Google is also pushing video advertising. Recent research, for example, found that nearly half of U.S. adults between 18 and 54 said YouTube helps them in making a purchased decision at least once a month. Pichai said YouTube’s Bumper Ads, which are six-second videos, are particularly working well, “as they help brands drive incremental reach and frequency.”

Pichai highlighted the new Google assistant and a “smart” messaging app called Allo that use machine learning to correspond with a digital assistant, another trend that has been growing among messaging apps, including Facebook Messenger. Message bots like these are expected to grow in popularity and play an increasingly significant role in commerce.

He also mentioned Google’s new virtual reality headset and its Daydream platform for virtual reality experiences using smartphones, which stand to compete with Facebook’s foray into virtual reality and with Oculus.

Facebook, which is competing with Google for ad dollars and more, will reveal its numbers on Wednesday.

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