Longer advertisements on YouTube yield higher profits for Google

NOS News•today, 09:18

Commercial blocks of more than 100 seconds in the YouTube app on the TV are no longer an exception. Partly because of these advertisements, Google’s parent company, Alphabet, has had an exceptionally good quarter that exceeds analysts’ expectations.

Alphabet’s revenues rose by 15 percent to 80.5 billion dollars (75 billion euros). Profit rose to $23.7 billion. The stock is likely to rise later today on the stock market. It seems that because of these good figures later today when trading starts on the stock exchange, the company will be worth more than 2 trillion dollars for the first time.

Investors are not only enthusiastic about the increased income. The announcement that the company will pay out part of its profits, dividends, to shareholders for the first time is also doing well. The company will pay out more than 2 billion euros in the first quarter.

Earlier this year, Facebook’s parent company Meta also decided to pay out dividends to shareholders.

By far the most money is earned from advertising with Google services. Video platform YouTube saw its revenues rise relatively fastest, by more than 20 percent.

At the end of last year, the company announced that commercial breaks on TV apps would become longer. On the other hand, a new commercial block is less likely to appear.