Google Q1 boosted by YouTube ads
April 24, 2015
Google reported higher quarterly revenue and profit as rising online ad volume offset a hit from the strong dollar.
Revenue for the quarter that ending March rose 12 per cent to $17.26 billion, from $15.42 billion a year earlier.
“Excluding the net impact of foreign currency headwinds, revenue grew a healthy 17 per cent year on year,” Google Chief Financial Officer Patrick Pichette said in a statement.
The number of ads, or paid clicks, rose 13 per cent, while the average price of online ads, or ‘cost per click’, declined 7 per cent.
Google’s ad revenue has been pressured as more consumers access its online services on mobiles devices such as smartphones and tablets, where ad rates are typically lower.
Pichette highlighted mobile ads as a key source of revenue growth during the quarter. “We are experiencing real strength in mobile search,” he said.
The contribution of ad revenue from video platform YouTube “continues to grow at a strong rate year-over year,” he added. Brands are embracing YouTube’s TrueView service, where advertisers pay only when users opt not to skip an ad, he said.
Google’s advertising sales in the first quarter rose 11 per cent to $15.51 billion.