We all know the majority of Google’s income comes from the lucrative advertising revenue, but recent statistics show us exactly how much profit that really amounts to. A German statistics company called Satista has reported that in the first six months of 2012, Google has absorbed $10.9 billion in advertising revenue.
To put this number into perspective, Statista also reported the revenue of the entire U.S. print media industry. All newspapers and magazines only generated a combined total of $10.5 billion in the U.S. While this is an interesting figure, Statista admitted that it is an unfair comparison because Google operates on a global scale while the print media industry was only analyzed in the U.S.
Even if the exact fairness of the comparison is questionable, it still does paint a pretty clear picture about the printing industry. While nearly everybody in the country knows that the popularity of web-based news and other types of Internet articles is increasing, this comparison really lets us know exactly how important the online environment really is.
Back in 2006 for example, the revenue of the print media industry trumped Google’s advertising revenue by a pretty significant figure. This tells us that in the past 6 years or so technology has really taken off and physical media has consequently suffered.
While it seems that Google’s advertising service is exploding, it doesn’t mean that everything is problem-free. Last quarter, Google reported a 15 percent year-over-year drop in advertising cost-per-click. This figure is the term used to specify exactly how much advertisers are willing pay Google every time somebody clicks on one of their advertisements. What this means is that less people are clicking on Google’s advertisements than they were last year. Perhaps this signifies a change in public thought. In general, it appears that most people on the web are starting to avoid advertisements as much as possible, no matter how interesting or personalized they seem to be.