After attending an event hosted by Alphabet Inc. (NASDAQ:GOOG), investment bank BMO Capital reported that the return on ad spend (ROAS) of the tech giant’s customers had improved.
BMO kept a $200 price target and an Outperform rating on the shares.
BMO Capital’s Analysis of Alphabet Inc. (NASDAQ:GOOG)’s ROAS Performance
Marketers are now generating $6 for every $1 that they invest in GOOG’s search ads, BMO Capital noted.
According to the investment bank, the tech giant’s utilization of AI is generating increased ROAS for its clients.
As Alphabet Inc. utilizes AI in more countries, its ROAS metric is likely to improve further, BMO Capital believes.
Other Positive Catalysts for Alphabet Inc. (NASDAQ:GOOG) Identified by BMO Capital
AI is spurring new types of searches, enabling marketers to reach their target audience more easily, BMO Capital stated.
Further, AI has also improved YouTube’s ROAs, the investment bank wrote.
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This article is originally published at Insider Monkey.
