beat Wall Street expectations, its ad business showed sluggish year-on-year growth as the quarter was partly-devoured by COVID-19.
In 2019, 84% of Google's revenue came from its ad business, so it's no wonder that analysts are all looking to the company as something of a bellwether for the larger market. So long as people are searching for things like health information, and less for things they want to buy or places they want to go on vacation, Google's ad business will suffer for it. Search advertising revenue in the last few weeks of March was down by more than ten percentage points from the year earlier period, according to the company.
Google CFO Ruth Porat said that there had been an interesting divergence between YouTube's advertising streams. Its direct response advertising, which compels users to take an immediate action like clicking a website had substantial growth "throughout the entire quarter," according to Porat.when it reported Q1 stronger-than-expected Q1 revenue
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