• Alphabet's search revenue grew by 14% in the first quarter of 2024, reaching $46 billion.
• YouTube also showed significant growth, increasing its revenue by 21% compared to the first quarter of 2023.
• Google Network revenues, including advertising technologies, declined again, this time by 1% year-over-year.

Despite potential threats to search from #AI, revenues in this segment sharply increased in the first quarter of 2024. Google #Search earned over $46 billion, 14% more than the previous year, marking the largest revenue growth from search in the last two years.

Artificial Intelligence and Advertising

#Google once again asserted itself as an AI-focused company, with AI developments complementing, not undermining, its advertising products. "We have a clear monetization plan for AI that includes advertising, cloud services, and subscriptions," said CEO Sundar Pichai during an earnings call on April 25, while Chief Business Officer Philipp Schindler added that the company is experimenting with new advertising formats, blending AI, search, and online shopping.

YouTube Revenues

YouTube's revenues also saw a significant increase this quarter, up 21% compared to the first quarter of 2023. It is expected that Shorts will play an increasingly significant role in YouTube's revenue. In response to a question about why Shorts are not monetized as other videos on YouTube, Schindler expressed confidence that this would soon change.

Decline in Google Network Revenue

The weak spot remains Google Network revenue, which includes advertising. The revenue decreased by 1% year-over-year, marking the seventh consecutive quarter of decline.

This business segment is likely to suffer the most from the disabling of third-party cookies, which Google recently postponed again.

To Publishers

Large platforms continue to grow richer, even as they shift focus to new technologies and AI. There are lessons to be learned here.

Forecast

Google will continue to integrate AI into its products and services. On the other hand, Google might sacrifice its advertising business to regulators to focus on segments where growth continues.

Other materials on this topic:

• "Yandex": Record revenues from advertising and e-commerce
• Meta doubled its ad revenue through the use of artificial intelligence
• The saga of Google and cookies: theories, opinions, and exposures
• Overview of the search engine market in Russia and the world in 2023
• Overview of the US programmatic advertising market for March 2024
• Google's ad revenues are once again rapidly growing, but the Internet is becoming more closed