The Strategist

Google's parent company shows record revenue during COVID-19 pandemic

04/28/2021 - 04:23

Google's parent company, Alphabet, reported record sales in the first quarter of 2021. The company's sales rose to $55.31bn and total profits to nearly $18bn, up 162%.

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Google's parent company Alphabet has reported record sales for the first quarter of 2021. They totaled $55.31 billion, up 34% from a year earlier, when online ad sales fell due to the coronavirus pandemic, The Wall Street Journal reported. 

The company also reported $31.88 billion in sales related to Google products such as the search engine, Gmail and maps. That's a 30% increase from a year ago and reflects how brands are spending to reach audiences online.  Video service YouTube (owned by Google) earned $6 billion, its revenue up 49% year-on-year. The company's total revenue rose to $18 billion, up 162% from 2020. 

Google's share of the US search advertising market declined last year from 61% to 57%, while Amazon increased its share to 19% from 13%, according to research firm eMarketer.The company's search engine drives 92% of global traffic, Google Maps accounts for 89% of navigation and YouTube accounts for 73% of the world's online video.

The pandemic has accelerated the company's advertising business, with people turning to Google searches for takeaway food and food delivery options during the year, watching videos on the company's YouTube platform. Brands have redirected their print, TV and in-store advertising spend to finding customers in the online space controlled by Google. However, regulatory action remains an obstacle for Google. Last year, the Justice Department and a coalition of states filed antitrust lawsuits accusing Google of making secret arrangements in favour of its search engines and advertising companies and hindering competitors.