Technology

Posted on May 2, 2017 by staff

Google profits surge amid rising advertising revenues

Technology

Google’s parent company Alphabet saw a 29 per cent jump in profits in the first quarter of 2017 thanks to rising advertising revenues.

Profits grew to $5.4 billion (£4.2bn) as money from ads went up 19 per cent to $21.4bn (£16.6bn).

The results suggest the tech giant has not been affected greatly by the ongoing boycott of YouTube’s advertising services by the likes of French advertising giant Havas, Royal Bank of Scotland, Lloyds, HSBC, Volkswagen, Marks & Spencer and the Cabinet Office.

The boycott was a result of The Times exposing how adverts for big brands often accompanied content that breaches YouTube guidelines, such as jihadist and racist videos.

Alphabet’s chief financial officer Ruth Porat said: “Our excellent results represent a terrific start to 2017, with revenues up 22 per cent versus the first quarter of 2016 and 24 per cent on a constant currency basis.

“We clearly continue to benefit from our ongoing investments in product innovation and have great momentum in our new businesses across Alphabet.”

Google has said it is exploring ways to improve the moderation of content on its platforms.