Google isn't conceding the mobile ad fight to Facebook

Alphabet (NASDAQ: GOOGL) is not conceding any ground to rival Facebook (NASDAQ: FB) when it comes to winning mobile ad dollars. In fact, the company handily beat analyst expectations in the second quarter, thanks in large part to revenue from mobile search ads, said Google CEO Sundar Pichai on the company earnings call.

"Once again the primary driver was the increased use of mobile search by consumers benefiting from our ongoing efforts to enhance the mobile search experience," said Pichai.

All the data Google gathers is fed into its algorithm to make search results even more relevant. More than a hundred teams at Google are now using machine learning to improve results — from Streetview to Gmail to voice search.

"Machine learning is the engine that will drive our future and it's already making our products better," he said.

Google and Facebook are getting almost all digital ad money. Both companies are also coveting live-streaming video ad dollars and building virtual reality technology, largely seen as the platforms of the future.

Facebook reported $6.24 billion in ad revenue, up 63 percent year over year on Wednesday. Mobile ad revenue made up $5.24 billion of that overall figure and grew even faster. Google earned $19.14 billion in ad revenue, and though most of that was not from mobile, mobile is growing fast that that is where Alphabet is investing.

"Our investment in mobile now underlines everything that we do today from search and YouTube to Android and advertising. Mobile is the engine that drives the person and now through a deep investments in machine learning and AI we are building the engine that will drive our future," said Pichai.

Google parent Alphabet's earnings: $8.42 per share, vs. expected EPS of $8.04

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