Google’s net income is down 36% YOY. Google’s year-over-year revenue growth is up 6%; by comparing with 2013, it is the smallest increase. Yet, it is good news that Google’s revenue has risen up overall, but the problem is compared with last year’s growth of 41%.

It is really bad news for online marketers. Google is the largest search engine optimization. Without SEO marketing, online marketing can’t happen, as analysts predicted that Google’s earnings per share (EPS) and revenue wear weaker.

The following part shows the data illustration, the only category where Google beat estimates could generate revenue.

• EPS: $1.06 vs. $1.25 expected (according to Refinitiv estimates).
• YouTube advertising revenue: $7.07 billion vs. $7.42 billion expected (according to StreetAccount estimates).
• Revenue: $69.09 billion vs. $70.58 billion expected (according to Refinitiv estimates).
• Google Cloud revenue: $6.9 billion vs. $6.69 billion expected, according to StateAccount estimates. 
• Traffic acquisition costs (TAC): $11.83 vs $12.38 expected, according to StreetAcount estimates. 

Before the earning call, Google parent was expected to post the slowest revenue growth in two years. According to the analyst, it was the slowest revenue growth for any quarter since 2013. 

Google Digital Ad Revenue

The biggest news is Google & YouTube Ad spending is slowing down. In quarter 3, Google’s digital ad revenue grew by only 2.5%. YouTube is the second largest search engine, which fell ad revenue to $7.07 billion. 

It has been down 2% YOY. And analysts expect it would be missing $7.42 billion. Regarding this, Ruth Porat, Alphabet CFO, stated during the earnings call:

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