Despite increasing consumer demand for its services, Google faces monetisation issues amid COVID-19

New Ideas in MarketingEssential news for marketers, summarised by YouGov
April 29, 2020, 1:49 AM UTC

YouTube revenue passed $4 billion in Q1.

As per Google’s latest earnings report, Alphabet’s Q1 2020 revenue is $41.2 billion, up 13% from last year. YouTube’s revenue passed $4 billion in Q1. This was $3 billion a year ago. However, Google’s CFO Ruth Porat expects Q2 to be tougher with ad revenue tracking downwards.

Despite the overall increase in subscribers and engagement across say, YouTube, the company is unable to fully monetise on advertiser interest, due to COVID-19. For example, travel advertising has almost vanished at a time when demand for Google’s services is high.

Further, with Google focusing on the crisis, it is unable to monetise high-intent traffic even as commerce activities return. Porat states Google will continue to provide information and updates regarding the virus while cutting back on marketing costs.

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