In last half decade Google has grown beyond expectations as revenue has increased by multiple folds. Also, in last one year Google has launched several features – enhancement of video advertisement, business pages for advertisers and companies on Google+ – to strengthen its traffic as well as revenue for coming years.
A Recent study projects that the global advertisement revenue is expected to touch $486 billion in 2012. However, Google’s revenue of 2011 is expected to settled down somewhere $37.82 billion which is 27% higher than 2010. If the trend continues in 2012, company’s overall revenue will touch approximately $48.03 billion. Now, as per wordstreamGoogle’s revenue from advertisement is 97% of company’s overall revenue; which equals to $46.5 billion in 2012. Just do a simple calculation and you will learn that Google’s contribution in global advertisement market would be around 9.56% in 2012.
|Google Revenue (2010)||$29.32 Billion|
|Google Revenue (2011)||$37.82 Billion (27% increment)|
|Google Revenue ( 2012)||$48.03 Billion (projected)|
|Google Advertisement Revenue||$46.5 Billion (97%)|
|Global advertisement revenue (2012)||$486 Billion ( projected)|
|Google % of Total Global advertisement Revenue||9.56%|
Surprisingly, Darren Herman – a well known industry analyst following Google from beginning – got its own calculation and predicts Google’s contribution in global advertisement market just 5.85%. Unfortunately, we have failed to evaluate the source of his projected data and find a huge gap with above projection.
Majority of Google ad revenue is derived from its search engine marketing practice or Google AdWords. It plays an important role in shaping and strengthening the revenue of the company.
If Google’s other services – like enhanced version of Google TV, Google Tablet as well Google Mobile – boom the market then definitely its revenue will increase further and might surge up by 10 to 20 percent.
Interestingly, in last one year Google seems more conscious towards advertisement field. It had acquired “Invite Media” for $70 million and “Admeld” for $400 million in order to strengthen its feet in advertisement market. Google has also added updates like enhanced video advertisement to attract more number of advertisers in coming years.
If Google continues its dream run than one can expect that Google will definitely surpass the milestone of $10 billion+ in revenue by Q4 2011. Although, it has reached near to $10 billion revenue in Q3 of 2011($9.78 billion).
By taking the view of Google advertisement revenue, many of its rivals like Facebook, Yahoo, and AOL have also started strengthening its advertisement arm either by acquiring companies or by adding enhanced features.
Currently, Google’s biggest competitor in advertisement market is Facebook which has kept strengthening its feet in advertisement market by adding various features like Discount Coupons, Pay Per Engagement, Mobile Ads as well as by launching new updates like Online payment, location-based offers, mobile ads.
Personally, I think Google will dominate advertisement market in coming years as it has currently ventured in various segments like Television, mobile, social media, and Tablet. Also, its Android smartphone OS is one of the leading OS in global mobile market. Therefore, it will be quite difficult for its competitors to leapfrog as Google will definitely use its platform to promote more and more advertisements to earn more revenue in coming years.