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Google Strives to Serve Publishers' Interest With Fee Waiver
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Alphabet’s (GOOGL - Free Report) division Google is making concerted efforts to promote interests of the publishers despite a full-blown economic crisis on account of the coronavirus pandemic.
Its latest decision to waive off the ad-serving fees is a testament to the same.
Notably, it has waived off the fee that the news publishers had to pay to the company for ads to be shown on their online properties by using Google Ad Manager for the next five months.
The move reflects Google’s commitment toward betterment of the news publishers. It is likely to benefit the publishers who are bearing the brunt of sluggish spending by advertisers owing to coronavirus-induced disruptions.
Hence, the fee waiver is likely to reduce the cost burden of the news publishers during this crisis scenario.
Consequences on Ad Business
We note that Google Ad Manager is the most common and popular ad-serving tool.
Although the latest fee waiver is expected to aid Google in sustaining momentum across the news publishers during this pandemic scenario, it is likely to hurt ad revenues to some extent.
Notably, ad revenues contribute the most to the company’s top line. In 2019, Google advertising revenues amounted to $134.8 billion, accounting for 83.3% of the total revenues.
Nevertheless, its deepening focus toward the welfare of the publishers remains a major positive.
Apart from the latest move, the search giant is working on other initiatives in a bid to help the media industry financially.
Recently, the company introduced a Journalism Emergency Relief Fund with the help of which it strives to support the news organizations reporting news during this pandemic situation globally.
Competition in the advertisement world is intensifying with the increasing efforts of companies including Google, Facebook and Twitter , which are leaving no stone unturned to retain their momentum in the media industry.
Apart from Google, Facebook has recently committed $100 million of financial support to serve the interests of the news organisations during the coronavirus pandemic.
Meanwhile, Twitter has also donated $1 million to promote the interests of the Committee to Protect Journalists and the International Women’s Media Foundation.
Nevertheless, Google’s fee waiver initiative is expected to provide it a competitive edge against the other two companies.
Zacks Rank & a Stock to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
Long-term earnings growth rate for Garmin is pegged at 7.35%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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Google Strives to Serve Publishers' Interest With Fee Waiver
Alphabet’s (GOOGL - Free Report) division Google is making concerted efforts to promote interests of the publishers despite a full-blown economic crisis on account of the coronavirus pandemic.
Its latest decision to waive off the ad-serving fees is a testament to the same.
Notably, it has waived off the fee that the news publishers had to pay to the company for ads to be shown on their online properties by using Google Ad Manager for the next five months.
The move reflects Google’s commitment toward betterment of the news publishers. It is likely to benefit the publishers who are bearing the brunt of sluggish spending by advertisers owing to coronavirus-induced disruptions.
Hence, the fee waiver is likely to reduce the cost burden of the news publishers during this crisis scenario.
Consequences on Ad Business
We note that Google Ad Manager is the most common and popular ad-serving tool.
Although the latest fee waiver is expected to aid Google in sustaining momentum across the news publishers during this pandemic scenario, it is likely to hurt ad revenues to some extent.
Notably, ad revenues contribute the most to the company’s top line. In 2019, Google advertising revenues amounted to $134.8 billion, accounting for 83.3% of the total revenues.
Nevertheless, its deepening focus toward the welfare of the publishers remains a major positive.
Apart from the latest move, the search giant is working on other initiatives in a bid to help the media industry financially.
Recently, the company introduced a Journalism Emergency Relief Fund with the help of which it strives to support the news organizations reporting news during this pandemic situation globally.
Alphabet Inc. Revenue (TTM)
Alphabet Inc. revenue-ttm | Alphabet Inc. Quote
Intensifying Advertisement Battle
Competition in the advertisement world is intensifying with the increasing efforts of companies including Google, Facebook and Twitter , which are leaving no stone unturned to retain their momentum in the media industry.
Apart from Google, Facebook has recently committed $100 million of financial support to serve the interests of the news organisations during the coronavirus pandemic.
Meanwhile, Twitter has also donated $1 million to promote the interests of the Committee to Protect Journalists and the International Women’s Media Foundation.
Nevertheless, Google’s fee waiver initiative is expected to provide it a competitive edge against the other two companies.
Zacks Rank & a Stock to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
Investors interested in the broader technology sector can consider a better ranked stock like Garmin (GRMN - Free Report) which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rate for Garmin is pegged at 7.35%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>