Small businesses make 2021 one of Google's best years
Thanks to investments in small business advertising, Google reports an increase in its income.
There are businesses that, even with the pandemic and after it, had important achievements in sales and income. This is the case with the search giant, Google.
It posted its highest sales growth in more than a decade and nearly doubled its earnings in the third quarter. This is thanks to the fact that smaller companies invested money in digital ads aimed at customers who have mostly bought online.
Marketers turned to Google to promote their products, giving the company the quarterly sales growth it typically sees over a two-year period in a single year.
Its revenue increased 41% to $ 65.12 billion, its highest figure in 14 years. It made a profit of $ 21.03 billion, almost three times the profit made before the pandemic.
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Part of these achievements are due to changes made by Google in conjunction with companies such as Apple Inc. These changes caused the performance of ads on Facebook Inc. and Snap Inc to decline, so many brands preferred to invest in advertising in Google.
YouTube has also been a key part of Google's advertising earnings. The video giant reported sales growth of 43%, which equates to $ 7.21 billion in the quarter. Google is close to generating as much revenue this year as Netflix Inc., valued at nearly $ 300 billion.
Not all is good news for Google. You must face the lawsuits that have been filed against you in recent days. Last week, Texas and more than a dozen state attorneys general filed an antitrust complaint about how the company cuts advertising spend through its system by between 22% and 42%, two to four times more than advertising exchanges. from the competition.
In addition, Google faces antitrust lawsuits from the Department of Justice and a separate coalition of states, in which it is mentioned that the company has secret agreements to favor its search engine and advertising businesses and prevent the participation of its competitors. The company already makes changes to its business that address some regulatory criticism.
To diversify its business, the technology company is betting on novelties with potential that are still moving slowly. Its Verily Life Sciences unit, which conducts health research, has not generated the kind of transformative sales it would need.
Google's cloud computing business is by far the most promising. After large investments in recent years, the division has started to gain market share behind the leaders Amazon.com Inc. and Microsoft Corp., which account for 41% and 20% of the market, respectively. Google's cloud sales increased 45% to $ 4.99 billion.
Google expects the launch of its Fitbit products and Pixel phones, as well as YouTube subscriptions to be the main sources of its growth.