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Mobile ad revenues drive 24 percent Alphabet earnings jump

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Google’s parent company boosted its income to a staggering Q3 $27.8 billion from smartphone marketing’s influence.

Alphabet, Google’s parent company, reported that exceptional mobile ad revenues have driven stronger than anticipated advertising sales. It has also led to greater than expected operating margins. This boosted the company’s shares as investor concerns were assuaged regarding the higher cost of mobile user acquisition.

Third quarter 2017 Alphabet revenues spiked by 24 percent, bringing them to $27.8 billion.

This was considerably higher than the projected quarterly revenue of $27.2 billion. Of that, $6.7 billion was profit, which was notably higher than Wall Street expectations. The improvements over the predictions were driven by mobile ad revenues. Alphabet, as well as a great deal of the tech sector, has experienced massive growth over the last few years as advertising shifts away from traditional media such as television, radio and print, toward online channels such as desktop and mobile’s spectrum of connected devices.

At the same time that Google struggles with European political pressures, it is greatly benefiting from mobile ad revenues.

mobile ad revenues trends texting push notificationsIn fact, at the same time that the company’s advertising platform is facing criticism for its role of propaganda distribution online, it’s clear that the bottom line is not suffering in any significant way. The search engine giant’s chief exec, Sundar Pichai, explained to analysts that the strategies to draw “both large and small advertisers” worldwide were successful, particularly in Asia. That market experienced a 29 percent sales increase, bringing it to $4.2 billion in the third quarter.

That quarter represented the fifteenth consecutive quarter in which Alphabet not only experienced year over year growth, but also saw increases in the double digits. Moreover, there isn’t any indication that the pace of the growth will be slowing at any time soon. The growth rate is approaching the highest level the company has seen in almost a half decade.

Google is Alphabet’s primary operating unit. Ad sales there make up the largest component of Alphabet’s total revenue. This marketplace is an exceptionally competitive one, particularly as the company’s primary rival continues to boost its efforts within the space. Still, the Google ad business has continued its growth as a growing number of users look to YouTube – a Google company – and its mobile search services. This has helped to keep the mobile ad revenues headed in a steeply upward direction.

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