Google makes one third of all global online ad revenue, but there’s trouble ahead

by: Kris CarlonMarch 18, 2016
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New figures released by Statista have shown just how huge advertising is to Google. The search giant officially earned one third of all digital advertising revenue globally in 2015: that’s 33.3% on the nose. Want to know just how much that equals? A cool $67.39 billion. But beneath this shiny surface, the facts tell a slightly different story.

Looking at the data released by Statista, you can see that Google’s online advertising revenue is growing at an increasingly slower rate: up 16.9% in 2013, 14.3% in 2014 and 11.5% in 2015. Given it’s current rate of decline, Google’s revenue growth with flatline in just four years. While the revenue graph still looks pretty great, Google’s slice of the global market is also on the slide.

Google's online advertising revenue is growing at an increasingly slower rate. Given it's current rate of decline, Google's revenue growth with flatline in just four years.

Digital advertising revenue Google Facebook Statista

Google’s percentage net share of total global digital advertising revenue is actually down to 33.3% in 2015 from 34.6% in 2014. Statista is predicting a further decline in 2016 to just 30.9% of global online advertising revenue. So who else is making money hand over fist? And are they doing it better than Google?

Well, Facebook is a good example. While Facebook isn’t making anywhere near the amount of money as Google, the social platform is enjoying fantastic growth, with four times the revenue in 2015 as it made in 2012. To compare growth with growth, Facebook’s advertising revenue grew 38.8% in 2013, 39.2% in 2014 and 32.7% in 2015. That’s three times the rate of growth Google enjoyed last year.

Google share of digital ad revenue Statista

Global online marketing expenditure is projected to cross the quarter-trillion dollar threshold in 2018, with online advertising accounting for one third of it.

With global online marketing expenditure projected to cross the quarter-trillion dollar threshold in 2018, there’s reason to be envious of Facebook’s growth. As a percentage of advertising expenditure generally, online accounts for one third of it, but it too is on the rise, as more and more advertisers look beyond traditional television advertising.

Where do you think the future of online marketing lies? Is it more effective than TV?

  • For Google ads, you can’t follow up if there is any dissatisfaction about your service provided. But with Facebook ads, your customer can follow up with you and even find you directly after see your ads. Hence, Facebook will have more eyeballs than Google. However, most of the Facebook user’s buying behavior need to research it from Google again in order to buy or convert after see your ads.

  • King_Android

    Lol this article is so wrong on so many levels on how to look at these numbers. I mean revenue is still averaging total growth amount by ~7B extra a year. Plus, everybody knows its harder to maintain a growth rate when you are already a mature company in the industry you are in. Doesnt mean things are troubling for Google. Plus Facebook ads have became alot more prevalent in their products over the past few years so that also could be the reasons for Facebook continued growth. Google has always been nothing more than a search giant getting money from ads. They are putting the foundation down to keep ad revenue raking in. Google is a mature ad revenue company. Once these other measures are in placed i.e. Google Fiber, Project Loom, etc to get more people hooked up to the web, the revenue will just keep increasing. Nothing about those figures says anything is troubling for Google. You have to ALWAYS look past just looking at the numbers on paper. ALWAYS.

    • Scr-U-gle

      I think you have forgotten that most of the ads Google serve are for Google.
      It’s a shell game, they pay themselves to place ads for themselves.
      The true revenue/profits are much lower than they are reporting.

  • Android123

    I believe the conclusions in this article are wrong. Ditto King_Android’s comments …nailed it.