Google's most recent earnings call was quite optimistic. Here are the bits I found most interesting.

AI Overviews

  • In 18 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.

 

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 models.
  • 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.