Google: Ads business is a focal point to its profits

Google’s ad network business revenue is closer to reach USD 20 billion, making it the third straight quarters of year-over-year double-digit sales increases. The business is as important to Google’s top-line as its hardware, cloud computing and app store groups.

For years, Google’s AdSense was on top, which delivers ads to websites in exchange for a cut of ad revenue. But as consumers migrate from desktop computing to mobile, momentum has shifted to AdMob, according to Sissie Hsiao, Googles apps business leader said that the company needed advanced tools than AdSense to deliver in-app ads.

Google has attracted app developers from competitors by lowering commissions and simplifying software. And it is increasingly satisfying advertisers with hot new formats such as video.

Advertisers are taking notice. Alex Hewson, managing partner at M&C Saatchi Mobile, said the London-based ad buying agency has used AdMob for years, and become the top supplier.

But it has come at a cost. Google is growing by giving app and website creators a bigger chunk of ad sales. Last year’s final quarter, Google’s portion fell by USD 33 million compared to the year-earlier even though network revenue rose USD 559 million. As a result, Googles-Parent Alphabet shares fell 5% after missing profit estimates this month.

Meanwhile, Google will begin using its Chrome to block advertisements it deems annoying to users, like full-page pop-ups or flashing, animated ones.

The move, which was initiated back in June, aims to follow international industry standards and become more user friendly.