A Look at Alphabet's key priorities and challenges for 2024

Alphabet, the parent company of Google, is one of the most dominant players in the tech industry, with a market cap of over US$1.7 trillion as of December 2023. The company's core business is online advertising, which accounts for about 78% of its revenue. However, Alphabet is also investing heavily in other areas, such as cloud computing, artificial intelligence (AI), hardware, and emerging markets. What are the main drivers and challenges for Alphabet's strategy in 2024? Here are some key points to consider.

Advertising:

Alphabet's advertising revenue growth has slowed down in 2023 due to the influence of the COVID-19 pandemic and the increasing competition from rivals like Amazon and Facebook. However, the company is expected to bounce back in 2024 as the economy recovers and the demand for online ads increases. Alphabet has a strong position in the search and video ad markets thanks to its popular platforms like Google Search, YouTube, and Gmail. The company is also expanding its presence in the display and mobile ad markets by leveraging its network of partner websites and apps, as well as its products like Google Photos, Google Maps, and Google Assistant.

Cloud:

Alphabet's cloud computing division, Google Cloud, is one of the fastest-growing segments of the company, with a revenue growth of 37% year over year in the fourth quarter of 2023. Google Cloud has a competitive edge in AI and machine learning, as it leverages Google's expertise and innovation in these fields to offer solutions like Google Cloud AI Platform, Google Cloud Vision API, and Google Cloud AutoML. Google Cloud also has a strong portfolio of customers, including prominent names like AT&T, Spotify, Twitter, and PayPal. In 2024, Google Cloud aims to gain more market share and profitability by expanding its global presence, launching new products and features, and forming strategic partnerships and acquisitions.

AI:

Alphabet is widely regarded as a leader in AI and machine learning, as it has developed some of the most advanced and influential technologies and products in this domain, such as Google Search, Google Assistant, Google Photos, Google Translate, and Google DeepMind. AI is at the core of Alphabet's strategy, as it enables the company to improve its existing services, create new ones, and explore new opportunities and markets. In 2024, Alphabet plans to continue to invest in AI research and development, as well as to apply AI to various sectors and industries, such as healthcare, education, transportation, and entertainment. Some of the examples of Alphabet's AI initiatives are Google Health, Google Classroom, Waymo, and YouTube.

Emerging markets:

Alphabet has a vast potential to grow its user base and revenue in emerging markets, such as India, Southeast Asia, and Africa, where internet penetration and digital adoption are still low. The company has tailored its products and services to suit the needs and preferences of these markets by offering features like offline access, data saving, local language support, and low-cost options. Alphabet has also launched initiatives to increase internet access and digital literacy in these regions, such as Google Station, Google Pay, and Google for India. In 2024, Alphabet will continue to focus on these markets by introducing more localized and relevant products and services and by collaborating with local partners and stakeholders.