Search advertising revenue grew in the most recent quarter for both Google and Microsoft. Last night, Alphabet released its Q1 2022 report, while Microsoft released its Q3 earnings report.
Strong year-on-year growth for Google. Overall, Alphabet reported revenue of $68 billion, up from $55.3 billion in Q1 2021. Zooming in on Google search, which accounted for 58% of Alphabet’s revenues, here are the key numbers for Q1 of 2022 (compared to Q1 of 2021):
- Total Google advertising revenue: $54.7 billion (up 22% from $44.7 billion)
- Google Search & other: $39.6 billion (a 24% vs. $31.9 billion)
- Google Network: $8.2 billion (up 20% vs. $6.8 billion)
- YouTube: $6.9 billion (up 14% vs. $6 billion)
Interesting stat. Google said that Maps searches for [shopping near me] were up 100% globally year-over-year. Noted Google: “People want to buy from brands that provide a seamless experience wherever and whenever they prefer to shop. For local businesses and big-box retailers alike, this remains a big opportunity.”
Strong year-on-year growth for Microsoft Bing. Overall, Microsoft reported revenue of $49.4 billion, up 18% from $41.7 billion in Q3 2021. The company combines search and news advertising together. That revenue was $2.9 billion in Q3 2022 vs. $2.4 billion in Q3 2021.
LinkedIn revenue grew to $3.4 billion, up 34% from $2.6 billion a year ago.
Why we care. After the earnings were reported, there was some discussion that this was evidence of some sort of slowdown. But most of that conclusion seemed to be drawn from YouTube and by comparing Q1 2022 vs. Q4 2021, which is a ridiculous comparison due to the holiday season falling in Q4, when advertisers are dumping money into Google and Microsoft ads. Though a slowdown could come at any point, search advertising was strong in 2021 and brands plan to invest more in PPC this year.