Google lags behind its competitors in e-commerce
With Google’s advertising revenues falling 8 percent in the second quarter, parent company Alphabet’s total revenue fell for the first time.
Facebook increased its sales by 11 percent and Amazon.com by 40 percent.
The Covid-19 outbreak triggered the e-commerce boom as businesses shut down stores online. However, Google cannot take advantage of this orientation compared to other tech giants.
With Google’s advertising revenue dropping 8 percent in the second quarter, parent company Alphabet Inc.’s total revenue fell for the first time. Sales of Facebook Inc., the company’s biggest digital advertising competitor, grew by 11 percent. Amazon.com Inc. managed to increase its income by 40 percent.
These figures show that Google is having difficulty transforming its superiority in online search into a meaningful e-commerce gain. Google’s shares fell 3 percent on Friday. Amazon rose 4 percent and Facebook climbed 8 percent.
While Google has the world’s largest search engine, US consumers are more likely to be looking at Amazon to buy something. Facebook’s Instagram app is seriously focused on online shopping, and Facebook itself has recently announced a major e-commerce initiative.
Google’s advertising activities were negatively affected by the travel industry and the situation of traditional retailers during the pandemic. If the internet is giant, he is aware of this situation. CEO Sundar Pichai repeatedly mentioned the company’s e-commerce initiatives at an analyst meeting Thursday.