Google’s most recent earnings call was quite optimistic. Here are the bits I found most interesting.
AI Overviews
- In 8 months they have reduced the costs for AIO’s by 90%.
- Google is seeing strong engagement with AIO’s. They are increasing overall search usage and satisfaction. People who use them come back to search more often.
- They’ve started showing search and shopping ads within AIO’s. They’re performing as well as the ads above and below AIO’s.
- AIO’s have been one of the most positive user satisfaction launches they have done in Search.
- When asked if there would be opportunity for Google to monetize informational queries the answer was yes.
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Upcoming Changes to Search
- Project Astra is a glimpse of the future where you can use AI to see and reason about the world around you. It’s expected to be released “as early as 2025”.
- Search will evolve continually in 2025. Sundar Pichai said, “We are in early days of what is a powerful new technology. We can do a lot more for our users.”
YouTube
- VEO (video generation) is coming to YouTube Shorts to help creators later this year.
- AI is greatly improving video recommendations on YouTube. Gemini is better at understanding video content and viewer’s preferences.
- 70% of creators on YouTube are uploading Shorts.
- >70 billion YT Shorts are watched every day.
- Advertisers will soon be able to book first position on Shorts blocks.
Other interesting points of note
- Search revenue is $76.5 billion for the quarter – up 13% YOY.
- All 7 of Google’s platforms use Gemini ******.
- More than a quarter of all new code generated at Google is generated by AI and then accepted by engineers.
- Circle to Search is available on over 150 million Android devices. One third of people who try it use it weekly.
- Lens is used for over 20 billion searches per month. It’s one of the fastest growing query types they see.
- The Gemini app has strong momentum on user growth.
- Gemini API usage has gone up over 14x over six months.
- Google plans to vigorously defend the DOJ vs. Google legal decisions.
- They’re working on the third generation of Gemini now. It’s progressing well.
- There’s an aggressive roadmap ahead for 2025.
Let’s see what is in store next!
Featured image generated by Grok with the prompt: An image of the Google logo and money.
