Alphabet said its advertising and promotional expenses have decreased by $ 1.4 billion in 2020, as spending cuts, paused or rescheduled campaigns, and digital-only event formats.
Work from home has proved to be a boon for many employees. This cut down travel time, saving money, allowing one to devote more time to family and better manage homes. Not only employees, but Google has also benefited from the work from home. The company saved nearly $ 1 billion due to working from home amid the epidemic.
During the first quarter, Google parent Alphabet Inc. saved $ 268 million in expenses from the company’s promotions, travel, and entertainment, while it was noted in the company’s filings. On an annual basis that would be more than $ 1 billion.
According to a Bloomberg report, Alphabet said its advertising and promotional expenses decreased by $ 1.4 billion in 2020 due to decreased spending, paused or rescheduled campaigns, and digital-only event formats. Travel and entertainment expenses declined by $ 371 million.
The report states that Google has used the savings to offset the costs incurred in hiring new talent who were ‘thousands’ in number. Marketing and administrative costs in the company also remained flat due to the epidemic.
However, unlike many other tech companies, Google has stated that it will open its offices in most locations around September this year. While this depends on the COVID-19 situation, it is likely to occur as countries recover from the epidemic. Google said it would go for a ‘hybrid’ model. Chief Financial Officer Ruth Porat said employees would sit on the campus with enough space to reduce density. Porat also said that Google will continue to invest in real estate worldwide.