Mobile Advertising Growth Keys Alphabet’s 24% Quarterly Revenue Rise


Google’s parent company, Alphabet, said mobile advertising growth powered its 24% year-over-year rise in quarterly revenue in the period that ended September 30.

Total revenue reached $27.77, up from $22.45 billion. Net income increased to $6.73 billion, or $9.57 per share, from $5.06 billion, or $7.25 per share. Operating margins went up 2%, from 26% to 28%.

During a 50-minute conference call to discuss the results with Wall Street analysts, Alphabet and Google CFO Ruth Porat and Google GEO Sundar Pichai devoted almost no time to the company’s YouTube unit, which has ramped up its “skinny bundle” TV offering and continued to expand its programming offerings.

Pichai said the YouTube Red premium video service led by TV network vet Susanne Daniels is on track to release 40 titles this year.

Porat addressed a question about the skittishness of advertisers who pulled back from YouTube due to concerns over “brand safety” after it turned out that their messages were sometimes appearing next to offensive videos.

“Many advertisers are back on the platform,” she said. Yet she also noted that programmatic ad technology–which uses algorithms and data to automate the process of buying, selling and placing ads–is “a very powerful growth driver for us.” Critics believe programmatic tools have sometimes led to the placements of blue-chip ads next to videos posted by white supremacists or other objectionable sources.

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