Google ad revenue up as AI investments soar

Google has reported a strong fourth quarter, citing its leadership in artificial intelligence (AI) and a 10% jump in ad revenue as key drivers of growth.

Consolidated revenues in Q4 2024 increased 12% to US$96.5 billion, slightly weaker than 13% growth reported last year, while Google revenues increased 10% to $84 billion, driven largely by Google Search and YouTube advertising.

CEO Sundar Pichai said the company's investments in AI infrastructure and product efficiencies will position the company for continued growth in 2025.

“We are building, testing and launching products and models faster than ever and making significant progress in compute and driving efficiencies,” he said.

Pichai said AI overviews in search are now available in more than 100 countries, while its Circle to Search feature, which allows users to search anything with a simple gesture, is being used on more than 200 million Android devices.

In total, the company achieved a combined annual revenue of US$110 billion, surpassing its initial $100 billion target.

AI momentum grows

Google's AI infrastructure continues to be a major strength, with 11 new cloud regions and data centre campuses launched in 2024.

Google's AI research made significant strides with the unveiling of Gemini 2.0, its most advanced AI model to date. The launch of Gemini 2.0 Flash has been met with strong adoption, and new experimental features such as Deep Research and Project Mariner are rolling out to users.

The company's generative media models, Veo 2 (for video generation) and Imagen 3 (for text-to-image generation), have also gained traction, with Google claiming 4.4 million developers are now using its Gemini models - double the number from just six months ago.

Google Cloud had a particularly strong quarter, securing major customers such as Mercedes-Benz, Mercado Libre and Servier. The number of first-time Cloud commitments more than doubled from the previous year, with several strategic deals exceeding $1 billion. The AI-powered Cloud services, including Vertex AI, saw significant adoption, with usage increasing 20-fold over the past year.

YouTube streaming soars

On YouTube, Google reported record-high streaming watch time in the US, maintaining its position as the most-used streaming platform. YouTube's investment in podcasts has also paid off, making it the most frequently used service for podcast consumption in the US. The expansion of YouTube Shopping has also boosted creator engagement, with some 250,000 creators participating in its affiliate program.

Waymo’s expansion and future plans

Google’s autonomous driving division, Waymo, also had a standout year, completing over 4 million passenger trips. The service is averaging 150,000 trips per week, with expansion plans set for Austin, Atlanta, and Miami in the coming year. Additionally, Waymo vehicles will debut in Tokyo in the coming weeks, marking the company's first international road test.

Pichai said Google is positioning itself for an even bigger year in 2025, as it continues to push the boundaries of technology and expand its influence across multiple industries.