Google and YouTube’s parent company Alphabet released its earnings for the second quarter and despite the recent stretch of brand safety concerns, it has come out on top.
The company reported revenues of $3.5 billion in net income on sales of $26 billion. The profit would have been much larger except for a record $2.7 billion European Commission antitrust fine. Despite these concerns for brand safety, specifically with YouTube earlier this year, Google still leads the world in digital ad sales.
Concerns over brand safety had companies pulling out of YouTube ads at a staggering rate. The world’s most popular video-sharing site came under fire earlier this year when it was discovered that ads were running next to extremist content. Ads were pulled, funds were diverted to other platforms like traditional TV and YouTube creators suffered considerable drops in income, too.
Google was charged by European regulators with favoring certain results that were part of its special product advertising program. Alphabet recorded the massive anti-competitive behavior fine as an operating loss in the second quarter, despite the possibility of an appeal.
Regardless of the fine, Alphabet’s reported revenue increased by 23 percent versus the second quarter of 2016 and 23 percent on a constant currency basis.
Alphabet is expected to make $73.8 billion dollars in net digital ad sales in 2017, according to eMarketer. Google represents 33 percent of the world’s $223.7 billion in digital ad revenue this year. Facebook is scheduled to release its earnings Wednesday. They currently sit a distant second at $36 billion.
“You’ve told us to do better when it comes to ad placement,” YouTube CEO Susan Mojcicki said during Newfronts. “I want you to know that we have taken your feedback to heart. We work hard every day to earn our advertisers’ and agencies’ trust, and we apologize for letting some of you down. I’m here to say that we can and will do better.”
