| Mobile search, YouTube drive Google's ad revenue in fourth quarter Margaret Boland | February 03, 2016 Want to receive more free charts from BI Intelligence? Sign up here » 
Google — now under the umbrella of Alphabet Inc. — beat expectations for Q4 2015, as its total ad revenue eclipsed $19 billion, a year-over-year (YoY) increase of 18%. This was the first time Google published its quarterly earnings under holding company Alphabet. Google's revenues are now composed of the company's Google ad network, Search business, YouTube, Google Play, Maps, and Android. Ad revenue stemming from Google-owned sites, like Search and YouTube, accounted for nearly $15 billion, an increase of 20% YoY. Google attributed its impressive ad revenue growth to the strong performance of mobile search during the holiday season as well as to high demand for YouTube's video ads. Mobile search was also responsible for the rise in paid clicks during the quarter. Demand for YouTube's TrueView video ads, on the other hand, drove down the cost-per-click. YouTube ads tend to be less expensive than Google Search ads since they are less likely to result in a direct-sales conversion, though new shoppable video ads hope to reverse this pattern. Here are some other key points from the Google portion of Alphabet's Q4 2015 earnings call. - The rise in Google network website's ad revenue was driven by programmatic advertising. Ad revenue from non-Google-owned sites that participate in the company's ad network made up just over $4 billion, up 7% YoY. Google CEO Sundar Pichai claimed that programmatic video impressions doubled YoY during the holiday season. Further, 60% of programmatic inventory was served to mobile devices during Black Friday weekend.
- The number of paid clicks increased while cost-per-click continued to decline during the quarter. Paid clicks increased 31% YoY, while cost-per-click declined 13%. This was a direct result of increased ad impressions on mobile search and high demand for less expensive YouTube video ads.
- Google's ad business is still the core of its overall business. Ad revenue made up nearly 90% of Google's total revenue. Other revenues are from app sales in the Google Play store, subscription services like YouTube Red, and early virtual reality initiatives.
Google's impressive ad performance in Q4 reasserts the platform's dominant hold on the global digital ad ecosystem. Its total ad revenue during the final quarter of 2015 was over 3X that of Facebook, which is also seen as a rising powerhouse. Looking forward, as consumers continue to turn to mobile for shopping — and start their shopping experience with Google Search — we expect that Google will only continue to boast impressive ad revenue growth. Here's a look at Google's total ad revenue growth. 
Here's a look at Google's total revenue breakdown. (Note: Does not include Alphabet's "other bets.")  Here's a look at Google's ad sales and pricing trends. 
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