Google’s ad revenue has been slowing down
Alphabet (GOOGL) is still reliant on Google’s ad revenue for most of its revenue. Unfortunately for the search engine giant, its growth is slowing down due to increasing competition. The company generated $36.3 billion in revenue during the first quarter, rising 16.7% from the year-ago quarter. The company’s stock fell over 7% on the day after it announced first-quarter earnings, the worst session for the stock in several years.
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Google is adding a number of new ad types
However, the company is looking to make changes. It announced a slew of new ads to help boost its ad revenue. Google announced that it is rolling out new ad types for mobiles.
Google searches on smartphones and other mobile devices will have “gallery” ads that will let publishers display many images. Gallery ads will be rolled out exclusively on mobiles.
Users from certain locations will also see advertisements in the discover feed. The discovery feed is Google’s personalized news recommendation, which appears on its apps. This section will be displaying ads for the first time.
The new ad format will make ads much more noticeable, which will likely attract publishers. Google expects up to 25% more interactions, which could help boost the company’s sagging ad revenue.