Strategic Opportunities and Insights from Google Q4 2021 Earnings CallFebruary 18, 2022 10:37 am
We are in a time when Facebook’s shares are plummeting in value due to iOS privacy updates, blocking Facebook’s tracking. Meanwhile, Google continues to outperform the social media giant when measured by revenue growth. The following highlights and insights are based on reporting directly from Google during their earning call for Q4, 2021.
Search revenues were the biggest contributor to revenue, and revenue growth, reporting a 45% increase in revenue. Google reported applying AI to their biggest revenue stream, Search, aka Google Ads. We often have conversations about AI and how best to leverage it’s capabilities. Google commented during the Q/A, noting AI, and machine learning, are being applied specifically in the Google Ads platform in the following areas:
- Broad Match Keywords
- Ad Responsiveness
- Insights Page
- Responsive Search Ads
- Smart Bidding
We noted last fall that we were already in beta with Googles MUM AI program and early signals are very optimistic.
One of Google’s strongest areas of growth reported was in Cloud Services. The biggest area of services in demand was reportedly:
- Data and AI services
- Multi-cloud operating and integrating services
- Cyber Security
- Google Workspace services – working safer
Cyber security is extremely important in digital marketing. Encrypted access, virtual machines, secure servers and wireless protection are key factors for defense. There is general consensus that more cyber attacks will be happening in the future.
We found it noteworthy that when asked what he thought about the future opportunities for Web 3.0, Sundar, Google’s CEO, responded, “blockchain investments for application development”. I interpret that as privately and publicly connected AI machines coming in the future. It would help justify their largest reported expense: servers. Finally, there was mention of research and development focused on radars. So, that’s something to look forward to in the future!
Our team uses a large spectrum of Google Cloud Services. The great thing about the products and services they roll out for digital marketing is that most of the performance is trackable to have the ability to see if the effort is working or not. We have a very exciting future for both AI and digital marketing!
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