Google Ad Revenue (2019–2024)
As an ecommerce business owner (or an aspiring one), it’s important to understand online marketing platforms well to know your available options. This includes running online ads and placing them where your target audience is.
One of the best places to run ads is on the world’s most popular search engine, Google. It’s such an effective marketing platform that Google is often considered to be the market leader in online advertising and has been for more than ten years.
Year-over-year increases of Google ad revenues are clear evidence of its popularity as an ad platform. According to the latest forecast from industry analysts, Google’s revenue from advertising in the US is expected at $75.9 billion in 2023. This is a net figure that includes Google ads seen on desktops, laptops, smartphones, tablets, and other devices, as well as varying ad formats including those on YouTube, a Google entity.
Google’s ad revenue in 2023 is expected to be 8.2% more than the previous year—a slowdown from the previous two years. In 2021, Google’s ad revenue grew 40.4%, nearly five times the expected growth rate this year, and annual ad revenues increased by 13.4% in 2022.
Google’s ad revenues are projected to rise a further 6.7% in 2024 to top $81 billion. In the six years from 2019 to 2024 (both years inclusive), the search engine giant’s annual ad revenues are expected to grow by an average of 14.8% per year.
Google Revenue Breakdown
According to the latest earnings release by Alphabet, Google’s parent company, total worldwide revenue for Google in Q4 2022 came in at $76 billion, of which $59 billion was from Google advertising. This includes revenue from Google search, ads on YouTube, and the Google network. This figure represents a 3.6% year-over-year decrease.
Breaking down Google’s revenue from Q4 2022 even further, we see that gross Google ad revenues from search alone were at $42.6 billion, down from $43.3 billion in the fourth quarter of the previous year. This marked a 1.6% annual decrease. Meanwhile, gross revenue from YouTube ads came in at just under $8 billion, a 7.8% decrease from the $8.6 billion in Q3 2022.
Google isn’t the only Big Tech to experience ad revenue falls. Facebook’s ad revenues in Q4 2022 also decreased, and analysts say this is an indication of the market’s recession worries.