YouTube ads and Google search drive Alphabet’s revenue
Alphabet’s consolidated revenue increased 12% year-over-year to $96.5 billion in Q4 of 2024. Meanwhile, its total revenue for the year clocked in at $350 billion, a 14% jump from 2023.
According to the company’s financial report, its services revenue saw a 10% increase to $84.1 billion in the quarter, reflecting strong momentum from Google Search (up 13% to $54 billion) and YouTube ads (up 14% to 10.4 billion). Its ad revenue reached $72.4 billion for the quarter, up 10% from the same quarter last year, when it reached $65.5 billion.
CEO Sundar Pichai said much of the growth was driven by Alphabet’s leadership in AI.
“We are building, testing, and launching products and models faster than ever, and making significant progress in compute and driving efficiencies. In Search, advances like AI Overviews and Circle to Search are increasing user engagement,” he said. “Our AI-powered Google Cloud portfolio is seeing stronger customer demand, and YouTube continues to be the leader in streaming watchtime and podcasts.
Pichai added, “Together, Cloud and YouTube exited 2024 at an annual revenue run rate of $110 billion. Our results show the power of our differentiated full-stack approach to AI innovation and the continued strength of our core businesses. We are confident about the opportunities ahead, and to accelerate our progress, we expect to invest approximately $75 billion in capital expenditures in 2025.”
Google, in particular, has been under scrutiny in the U.S, where last year a judge found it liable for monopolistic behaviour over online search and related advertising. The case will go to the remedies phase in April, and among the proposed rulings the Department of Justice has submitted to the judge includes recommendations for Google to divest its Chrome browser; end default search agreements; prevent it from investing in potential competitors; and ensure that Android does not favor its own advertising services or search engine.
Snap’s revenues grew by 16% in 2024
In 2024, Snap’s revenue grew 16% year-over-year to $5.36 billion and its Q4 revenue rose 14% year-over-year to $1.56 billion. In North America alone, the social network’s Q4 revenue was $969 million, according to its latest financial report.
Direct response ad revenue increased 14% year-over-year in the quarter and was the largest driver of its ad revenue growth in 2024. There was also strong demand for Pixel Purchase, a tool that helps brands track the effectiveness of their ads, as well as App Purchase Optimizations, which helps advertisers achieve better results with their ads and saw a growth of more than 70% year-over-year in the quarter.
Last year, Snapchat+ subscribers increased from seven million to 14 million. In Q4, the social network reached 453 million daily active users, a year-over-year increase of 39 million.
The company also said its Snap Star program led to a more than 40% year-over-year increase in the number of creators posting content on the platform in the quarter. The number of lens snaps its users posted in the quarter increased 49% year-over-year, with the number of lens snaps shared among friends and family increasing by 40% year-over-year.
Over the last year, Snapchat has been updated with new features. The app introduced its first Sponsored Snap in Canada with Disney as an advertising partner. It also announced sponsored locations of interest on Snap Map, a personalized map that allows users to see where their friends are and have been, what’s happening nearby and what places are popular based on community visit trends. The feature was launched with McDonalds, Disney and Taco Bell as advertising partners.
In addition, the company rolled out new location sharing features in its Family Center (a hub within the app that offers tools and resources for parents), as well as a new monetization program for creators, allowing them to monetize their stories. It has also been rolling out new updates in Canada aimed at increasing online safety for teens.
