Google Assistant, Google’s rival to Siri might soon look to monetize through voice search results, the company’s CEO Sundar Pichai pointed out during The Q3 2016 investor call. “The Assistant team talked about conversational actions as a way by which we can integrate third parties into the Voice experience,” Pichai was quoted as saying during the call.
Essentially Picahi was suggesting that Google might integrate ‘third-party’ or an advertiser’s ad in reply to a user’s search queries. This is nothing new, considering that fact that Apple’s has already tied up with Zomato and Uber to reserve tables, order food or book a cab via voice commands on Siri.
Machine learning integration for ads
Google is taking one step ahead by integrating machine learning into voice commands on Google Assistant. Pichai added during that call that “things like Tensor Processing (TP) usage we talked about at Google I/O play a role into something like Voice Search…as we evolve the Google Assistant, I think voice is going to play a major role that way as well,”
He was denoting Google’s Tensor Processing Unit—the company’s custom made chip meant for machine learning—which was unveiled During Google’s developer event in May. The chip helps Google to identify objects and faces in photos, recognize voice commands on Android phones, and now this will be used for ads. Note that Google Assistant’s knowledge graph now understands over 70 billion facts about people, places, and things in the real world.
“We are in very, very early stages of incorporating machine learning, the newer machine learning systems in ads. And again, that’s the beginning of a long journey as well,” Pichai said during the call
On the AMP project
It’s been a year since Google introduced Accelerated Mobile Pages (AMP) that helps load pages faster on mobile. The open-source project now covers over 700,000 domains or websites, Picahi said during the investor call. Even blogging platforms are using AMP as he pointed out that “tens of millions of WordPress sites now have AMP pages with page load speeds up to 90% faster than normal in some cases.”
The company is also working on a new way to integrate ads into AMP through a new initiative named “AMP for Ads”, which Pichai claims is “a new approach to creating and selling ads with speed.”
On YouTube viewership
Currently, YouTube claims to have more than 1 billion monthly users. Google has partnered with multiple news organizations to live stream US presidential debates on YouTube and this has apparently helped increase viewership. “The three (presidential) debates ranked as the three most viewed political live streams of all time on YouTube, with over 8.5 million hours watched live, a 5X increase from the 2012 debates,” Pichai said during the call.
YouTube has also been trying to drive monetization via original content. This was mostly available via YouTube red—an ad-free streaming platform. This seems to have worked as Pichai said that “YouTube originals like the recently released Single by 30 remain incredibly popular and continue to drive subscriptions for the YouTube brand.”
On Video ads
Google’s short video ads on YouTube (6 seconds) are mostly fetching the most returns via mobile. “Brands like Universal Pictures have been pairing these shorter videos with their standard length ads on YouTube, and they’re seeing great results, especially on mobile,” Pichai said during the call. He added that advertisers running video campaigns on both TV and YouTube simultaneously, witnessed more ad impression on Google search.
“We also recently announced expanded capabilities to show marketers how TV and YouTube campaigns increase Google and YouTube searches for their brand. From early tests, we have seen that YouTube generates almost twice as many searches per impression than TV generates,” Pichai said.
-Google’s total revenue stood at $22.45 billion during Q3 2016, which is up 20% Year-over-Year (YoY).
-The company’s GAAP net income (profits) stood at $5.06 billion in this quarter (Q3 2016), which up from $3.97 billion in the same quarter last year (Q3 2015)
-Google Websites revenue was up 23% YoY at $16.08 billion in Q3 2016;
-Advertising revenue was $19.82 billion which is up 18% YoY;
-Other revenues stood at $2.43 billion which is up 39% YoY.
-Google Network Members’ websites revenue was $3.73 billion in Q3 2016.
Paid clicks and cost-per-click
-Overall paid clicks were up 9% QoQ and 33% YoY.
-Paid clicks on Google website was up 11% QoQ and 42% YoY
-Overall cost-per-click was down by 5% QoQ, and down by 11% YoY
-Cost per-click on Google websites were also down by 6% QoQ, and down 11% YoY.