How did the tech giants fare in Q2 2021?

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After a tumultuous 2020 for advertising, ad spend is booming, and not the least on digital platforms. But how does the performance of major media owners compare in the tech space?

All second quarter results refer to the calendar months of April, May and June.

Alphabet (Google)

  • Income in the second quarter grew 62% year-over-year to $ 61.9 billion (£ 44.6 billion)

  • In Q2 2020, when the pandemic had its most severe economic impact, Alphabet’s revenue was roughly flat compared to 2019

  • Operating result in the second quarter of this year was $ 19.4 billion – more than three times the equivalent figure in 2020 ($ 6.4 billion) and more than double what it was in 2019 (9, $ 2 billion)

  • Operating margin was 31%, compared to 17% in 2020 and 24% in 2019

  • from google advertising revenue last quarter reached $ 50.4 billion, an increase of 69% over last year, and accounts for 82% of Alphabet’s total revenue

  • The fastest growing segment was YouTube advertising, up 84% to $ 7 billion

  • The most important segment, Google search and other advertisements, rose 68% to $ 35.8 billion

  • By region, Alphabet’s strongest growth in the second quarter was in the rest of the Americas (excluding the US), where revenue grew 83%, followed by EMEA (up 68%), from APAC (62%) and the United States (57%).

  • Through first six months of the year, Alphabet’s total revenue rose 47% to $ 117 billion

  • Alphabet increased sound sales and marketing expenses 35% in Q2 to $ 5.3 billion.

  • Philipp Schindler, senior vice president and chief commercial officer of Google, said: “The momentum is really strong both for our brand and for our direct response business on YouTube. On the brand side, the global transition to online video and streaming continues, with over two billion monthly active users and over one billion hours of video watched every day. I think we are at the forefront of this change. And advertisers increasingly need to look beyond linear TV alternatives to achieve their reach and brand awareness goals.

    “The Nielsen Total Ad Ratings Reach report found that, on average, 70% of YouTube reach is reaching unreached audiences through advertisers’ TV media. So not only do we improve reach, but we also help brands do it more effectively. And as a result of that, you see many advertisers re-evaluating their media mix and increasing their investments in our platforms.

    “On the direct response part, we help advertisers turn intention into action. We are trying to generate performance on an incredible scale. Let’s take an example: With action video campaigns, which is our next-gen TrueView for action format, advertisers had access to even more inventory on YouTube and our partners, all in one automated campaign. We are working very hard to make YouTube not only more usable, but also more purchasable. YouTube is therefore useful not only for building a brand and reaching a large audience, but also for converting viewers into buyers. “

    Facebook

    • Advertising revenue in the second quarter grew 56% to $ 28.6 billion

    • In the second quarter of 2020, they were up 10% compared to the previous year

    • Facebook non-advertising revenue rose 36% to $ 497 million. They only represent 1.7% of total turnover

    • Income from operations more than doubled from $ 6 billion to $ 12.4 billion

    • Facebook operating margin was 43%, compared to 32% last year and 27% the previous year

    • Daily active users and monthly active users on the Facebook platform both grew 7% year on year to 1.91 billion and 2.9 billion respectively

    • Across the family of platforms – Facebook, Instagram, Messenger and WhatsApp – DAUs and MAUs each grew 12% to 2.76 billion and 3.51 billion. This means that 46.5% of the human population uses Facebook’s platforms every month.

    • The fastest growing region for ad revenue was Rest of the World at 86%, followed by Europe at 63%, APAC at 56%, and the United States and Canada at 48%.

    • Marketing and sales expenses rose 15% year-on-year to $ 3.3 billion.

    Dave Wehner, Chief Financial Officer of Facebook, said: “The macroeconomic environment for online advertising remains very strong. Growth in advertising revenue was largely driven by verticals that performed well during the pandemic, such as e-commerce and consumer packaged goods. In addition, we have seen improved growth trends in verticals that were particularly difficult during the pandemic, such as travel, entertainment and media.

    “In the second quarter, the total number of ad impressions served on our services increased by 6% and the average price per ad increased by 47%. Growth in impressions was driven primarily by developing markets, particularly in Asia Pacific, while price growth benefited from widespread strength in demand from advertisers. Recall that in the second quarter of 2020, the effects of the pandemic contributed to high impressions and depressed prices, which we are now honing.

    “We expect ad revenue growth to be primarily driven by year-over-year ad price increases over the remainder of 2021. [Apple] IOS updates, which we believe will have a bigger impact in Q3 compared to Q2. “

    Amazon

    • Total net sales in the second quarter grew 27% year over year to $ 113 billion

    • Sales of services grew 42% to $ 55.1 billion, meaning services now account for almost half (49%) of total revenue

    • Sales in Amazon’s “other” segment – which is mainly The advertisement – grew 87% year-on-year to $ 7.9 billion

    • Operating result was up 32% to $ 7.7 billion

    • Amazon said its advertising offering has launched more than 40 new self-service features and capabilities, including:

      • Regional Sponsored Product Campaign Creation Tools

      • Access to educational, technical and marketing resources via its network of partners

      • A simplified creative asset management solution

    • Amazon Advertising has also expanded its services to Australia, Europe, India, Japan and Saudi Arabia

    • Amazon Streaming TV and Twitch Ads Now Jointly Reach 120 Million US Viewers Monthly

    • Other business initiatives include the Black Business Accelerator, which commits $ 150 million over four years to help black business owners and entrepreneurs succeed as third-party sales partners.

    Andy Jassy, ​​who took over from Jeff Bezos as CEO of Amazon in July, said: world facing difficult circumstances of pandemic. At the same time, AWS [Amazon Web Services, the cloud-computing arm] has helped so many businesses and governments maintain business continuity, and we’ve seen AWS’s growth accelerate again as more businesses come up with plans to transform their businesses and migrate to the cloud.

    Twitter

    • Total second quarter revenue increased 74% to $ 1.19 billion

    • Advertising revenue increased 87% to $ 1.05 billion, other income up 13% to $ 137 million

    • Total advertising commitments increased by 32%, while cost per engagement increased by 42%

    • Twitter made a net revenue of $ 65.6 million, against a loss in Q2 2020 of $ 1.38 billion (most of which is attributable to its tax bill)

    • Monetizable daily active users, the measure of Twitter users, increased 11% year-on-year to 206 million.

    Ned Segal, Chief Financial Officer of Twitter, said, “We have performed above expectations across all major products and geographies while growing our audience.

    “We continued to make significant progress on our direct response and branded products with updated ad formats, improved measurement and better prediction. We are driving more value for advertisers through our strong push towards performance-based advertising and our expanded offerings for small and medium businesses.

    “We ended March with momentum for both the brand and the direct response. In April, trends continued to improve with continued strength throughout the quarter in all major products and geographies.

    “A growing audience, better advertising products, strong sales execution, global events and product launches for advertisers all had a big impact on our performance. The impact of TCA [ad tracking transparency, the privacy feature introduced by Apple in its recent iOS update] on the second quarter was also more moderate than expected, although it is too early to assess the long-term impact. “

    Break

    • Income in the second quarter was $ 982 million – up 120% from the previous year

    • From the company operating loss was $ 192 million – 38% lower than in 2020

    • Daily active users increased 23% to 293 million

    • Sales and marketing costs rose 36% to $ 180 million.

    Jeremi Gorman, Commercial Director of Snap, said: “We have enjoyed a favorable operating environment and continued success with direct response advertisers and major brands, and we continue to leverage our successful advertising products to grow our global advertiser base. We are fully focused on growing our revenue and ARPU [average revenue per user] opportunities which we believe will be driven by three key priorities. First, drive ROI through measurement, ranking, and optimization.

    “Second, invest in our sales and marketing functions by continuing to train, hire and build on a large scale. And third, create innovative advertising experiences around video and augmented reality, with a focus on shopping and commerce. Our commitment to these three priorities, along with our unique reach and large engaged community, enable us to drive performance at scale for businesses around the world. “


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