In 2023, Google's ad revenue amounted to 264.59 billion U.S. dollars. The company generates advertising revenue through its Google Ads platform, which enables advertisers to display ads, product listings and service offerings across Google’s extensive ad network (properties, partner sites, and apps) to web users. Google advertising Advertising accounts for the majority of Google’s revenue, which amounted to a total of 305.63 billion U.S. dollars in 2023. The majority of Google's advertising revenue comes from search advertising. Google market share These revenue figures come as no surprise, as Google accounts for the majority of the online and mobile search market worldwide. As of September 2023, Google was responsible for more than 84 percent of global desktop search traffic. The company holds a market share of more than 80 percent in a wide range of digital markets, having little to no domestic competition in many of them. China, Russia, and to a certain extent, Japan, are some of the few notable exceptions, where local products are more preferred.

In the most recently reported fiscal year, Google's revenue amounted to 348.16 billion U.S. dollars. Google's revenue is largely made up by advertising revenue, which amounted to 264.59 billion U.S. dollars in 2024. As of October 2024, parent company Alphabet ranked first among worldwide internet companies, with a market capitalization of 2,02 billion U.S. dollars. Google’s revenue Founded in 1998, Google is a multinational internet service corporation headquartered in California, United States. Initially conceptualized as a web search engine based on a PageRank algorithm, Google now offers a multitude of desktop, mobile and online products. Google Search remains the company’s core web-based product along with advertising services, communication and publishing tools, development and statistical tools as well as map-related products. Google is also the producer of the mobile operating system Android, Chrome OS, Google TV as well as desktop and mobile applications such as the internet browser Google Chrome or mobile web applications based on pre-existing Google products. Recently, Google has also been developing selected pieces of hardware which ranges from the Nexus series of mobile devices to smart home devices and driverless cars. Due to its immense scale, Google also offers a crisis response service covering disasters, turmoil and emergencies, as well as an open source missing person finder in times of disaster. Despite the vast scope of Google products, the company still collects the majority of its revenue through online advertising on Google Site and Google network websites. Other revenues are generated via product licensing and most recently, digital content and mobile apps via the Google Play Store, a distribution platform for digital content. As of September 2020, some of the highest-grossing Android apps worldwide included mobile games such as Candy Crush Saga, Pokemon Go, and Coin Master.

Advertising remained the main revenue-generating segment for Google in 2024. During the examined year, 77.8 percent of Google’s revenue came from advertising on Google properties and YouTube. The Google Cloud revenue segment generated 10.8 percent of the company's revenues, up from 4.3 percent in 2018.

This statistic shows the share of Google in the revenue of general search advertising in Australia from 2014 to 2018. In 2018, Google accounted for around 96 percent of the general search advertising revenue in Australia.

In 2021, Google's net search advertising revenue stood at 49.4 billion U.S. dollars. In 2022, the amount was expected to increase by 12.5 percent to reach 55.6 billion. In that year, search ad revenue was forecast to account for roughly 79 percent of Google's total revenue.

In 2024, Meta (formerly Facebook Inc) generated over 160 billion U.S. dollars in ad revenues. Advertising accounts for the vast majority of the social network's revenue. Facebook advertising revenue – additional information Facebook’s business model heavily relies on ads, as the majority of social network’s revenue comes from advertising. In 2020, about 97.9 percent of Facebook's global revenue was generated from advertising, whereas only around two percent was generated by payments and other fees revenue. Facebook ad revenue stood at close to 86 billion U.S. dollars in 2020, a new record for the company and a significant increase in comparison to the previous years. For instance, the social network generated almost seven billion U.S. dollars in ad revenue in 2013, about 10 billion less than the 2015 figure. Facebook's average revenue per user also significantly increased in the same time span, going from 6.81 U.S. dollars in 2013 to 32.03 U.S. dollars in 2020. The U.S. and Canada are important markets for Facebook, considering the average revenue per user (ARPU) in these two countries is far above the global average. Facebook’s ARPU in the U.S. and Canada was 41.41 U.S. dollars in the last quarter of 2019, while the global average was 8.52 U.S. dollars. In Europe, Facebook’s average revenue per user was 13.21 U.S. dollars during the same time period. In terms of segments, mobile is the most promising advertising form for the company. In 2018, Facebook’s mobile advertising revenue already accounted for 92 percent of the social network’s total advertising revenue. Facebook’s mobile advertising revenue grew from an estimate of 13 billion U.S. dollars in 2015 to 50.6 billion U.S. dollars in 2018.

In the third quarter of 2024, Google's revenue amounted to over 96.05 billion U.S. dollars, up from the 85.5 billion U.S. dollars registered in the same quarter a year prior. The company amounted to an annual revenue of 348.16 billion U.S. dollars throughout 2024, its highest value to date, with most of its earnings being powered by advertising through Google sites and its network. Google advertising The foundations of Google's earnings are its advertising revenues, generated through its Google Ads platform, which enables advertisers to display ads, product listings, and service offerings across its extensive network (properties, partner sites, and apps) to web users via programs like AdSense or AdSearch. In 2024, Google accounted for most of its parent company Alphabet's annual revenues with 234.2 billion U.S. dollars in Google website ad revenues alone. Other sources of revenue Google's multitude of income sources also includes digital content products and apps sold through the digital content distribution platform Google Play, as well as hardware including Chromecast devices and smartphones. Geographically, the biggest single country share of Alphabet’s revenue comes from the United States, and close to 30 percent of revenues originate from the EMEA region.

According to the evaluation of political advertising spending on Google between May 31, 2018 and October 22, 2024, the Biden for President group was the largest advertiser on the platform, with ad spending of more than 101 million U.S. dollars in the measured period. Donald J. Trump for President, Inc. ranked second in that time, with 83.4 million dollars spent on Google ads.

As of early 2018, the average CPC for legal AdWords on Google Display Network amounted to 0.72 U.S. dollars, whereas the same keywords on search cost 6.75 U.S. dollars per click, becoming the most expensive keyword on Google Search Network in the measured period. In comparison, the second spot belonged to finance & insurance keyword which cost half as much. How much does Google make on advertising? Google search advertising is the largest source of revenue for the company as it accounts for roughly 70 percent of total profits. In 2018, Google generated more than 96 billion U.S. dollars through its search properties. In the same period, Google network properties, including AdMob, AdSense and AdManager generated close to 20 billion U.S dollars, bringing in total ad revenues of 116 billion in 2018. It makes for quite an impressive result taking into account that the entire Google segment of Alphabet brought in slightly over 136 billion dollars in total revenue that year.

In 2022, search advertising spending amounted to 185.35 billion U.S. dollars worldwide. The expenditure was forecast to increase by approximately six percent annually until 2028, reaching close to 261 billion U.S. dollars.

Search Advertising
Search advertising, or search engine advertising (SEA), refers to the placement of ads on search result pages above or next to organic search results. As these ads target local and keyword-related factors, they have a higher conversion probability, making them a popular tool for online marketers. In the past few years, search advertising has become one of the leading forms of digital advertising worldwide, seeing annual growth in spending. In 2019, global search ad spend stood at nearly 106.5 billion U.S. dollars, trailing only behind display ad expenditures. As consumers are increasingly using their phones for search requests, spending on mobile search advertising is set to increase in the following years.

Leading segment drivers
The United States is the world’s leading market for search advertising, as well as the segment’s top spender. In 2019, over 55 billion U.S. dollars were spent on search advertising, and according to the latest forecasts, spending will surpass 86 billion U.S. dollars by 2023. In return, revenue from search ads is expected to grow by roughly ten percent in 2020. Looking at the placement of ads and the allocation of search advertising budgets, Google stands out as the primary recipient. In 2018, advertisers reported allocating around 60 percent of their search advertising budgets towards the U.S. tech giant.

Google UK Limited reported revenues of over 2.6 billion British pounds in the fiscal period ending December 2022. In 2021, the company changed its financial year end to December 31 from June 30, resulting in such a result. Google generates the majority of its revenues through advertising.

Context

The Google Merchandise Store sells Google branded merchandise. The data is typical of what you would see for an ecommerce website.

Content

The sample dataset contains Google Analytics 360 data from the Google Merchandise Store, a real ecommerce store. The Google Merchandise Store sells Google branded merchandise. The data is typical of what you would see for an ecommerce website. It includes the following kinds of information:

Traffic source data: information about where website visitors originate. This includes data about organic traffic, paid search traffic, display traffic, etc. Content data: information about the behavior of users on the site. This includes the URLs of pages that visitors look at, how they interact with content, etc. Transactional data: information about the transactions that occur on the Google Merchandise Store website.

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Acknowledgements

Data from: https://bigquery.cloud.google.com/table/bigquery-public-data:google_analytics_sample.ga_sessions_20170801

Banner Photo by Edho Pratama from Unsplash.

Inspiration

What is the total number of transactions generated per device browser in July 2017?

The real bounce rate is defined as the percentage of visits with a single pageview. What was the real bounce rate per traffic source?

What was the average number of product pageviews for users who made a purchase in July 2017?

What was the average number of product pageviews for users who did not make a purchase in July 2017?

What was the average total transactions per user that made a purchase in July 2017?

What is the average amount of money spent per session in July 2017?

What is the sequence of pages viewed?

The highest clickthrough rate on Google Display Network - 1.08 percent - belongs to real estate advertising. For Google Search Network, dating and personals ads have the highest CTR, reaching 6.05 percent. The difference between Google’s Display Network (GDN) and Search Network is that the former offers placement of display ads on numerous websites, while the latter is dedicated to text advertising appearing alongside search engine results. What about mobile search advertising?
With the internet becoming more accessible via mobile devices, search advertising is adapting to this format as well, but mobile CTRs in Google AdWords are a bit different. The highest mobile rates on Search Network are attributed to travel and hospitality ads and hair salon advertising has the highest CTR on the Display Network. How popular is Google among users and advertisers?
In certain countries, Google is widely used, as proven by the high share of desktop search traffic originating from the search engine. In Brazil, India, Spain, Australia, Germany, France and Italy Google commands over 90 percent of the search traffic. When it comes to advertising, Google is definitely the leader when compared to other major players in the market. In fact, its advertising revenue was roughly eight times higher than that of its closest competitor, Baidu.

In the most recently reported fiscal year, Alphabet's revenue amounted to 350 billion U.S. dollars, up from 307.3 billion U.S. dollars in the previous year. Alphabet Inc. is an American multinational conglomerate created in 2015 as the parent company of Google, along with several other companies previously owned by or tied to Google. Alphabet business segments Alphabet has several operating segments, including Google and Other Bets. Google is the only reportable segment, as none of the other segments meet the quantitative revenue thresholds to qualify as reportable segments. In 2022, Google segment revenue amounted to 348.1 billion U.S. dollars. During the same fiscal period, the Other Bets segment revenue amounted to 1.64 billion U.S. dollars in total. According to the company, the Google product segment includes “revenues from the company’s main products Ads, Android, Chrome, Google Cloud, Google Maps, digital content distribution platform Google Play, Hardware, Search and YouTube. Google generates revenues primarily from advertising; sales of apps, in-app purchases, digital content products, and hardware; and licensing and service fees, including fees received for Google Cloud offerings.” Alphabet’s Other Bets segment mainly generates revenues through the sales of TV and internet services through Access, in addition to R&D services and licensing through Verily. Alphabet businesses Calico, CapitalG, GV, Waymo and X are also included in this segment.

In 2024, Meta Platforms generated a revenue of over 164 billion U.S. dollars, up from 134 billion USD in 2023. The majority of Meta’s profits come from its advertising revenue.Meta’s total Family of Apps revenue for 2022 amounted to 114 billion U.S. dollars. Additionally, Meta’s Reality Labs, the company’s VR division, generated around 2.1 billion dollars. Meta’s marketing expenditure for 2022 amounted to just over 15 billion U.S. dollars, up from 14 billion U.S. dollars in the previous year. Increasing audience base despite privacy misgivings Meta’s user numbers have continued to grow steadily throughout past years. In the fourth quarter of 2022, there was a total of 3.74 billion worldwide users across all of Meta’s platforms. For this same time frame, the company recorded 407 million monthly active users across Europe. Downloads of Meta’s app Oculus, for which virtual reality headsets are required, increased greatly from 2020 to 2021, reaching a total of 10.62 million downloads by the end of last year. Up until 2021, downloads had grown in a steady manner but from 2020 to 2021, they more than doubled.User numbers have increased despite data security issues and past controversy such as the Cambridge Analytica scandal in 2018. There remains skepticism surrounding the idea of the metaverse in which Meta aims to immerse itself. Of surveyed adults in the United States, the majority said that they were concerned about their privacy if Meta were to succeed in creating the metaverse.

Google UK Limited reported a net profit of close to 283 million British pounds in the fiscal year that ended December 31, 2022. In the previous fiscal year, Google UK Limited changed its financial period end to December 31 from June 30. Google generates the majority of its revenue through advertising.

Over the last two observations, the average ad spending per internet user is forecast to significantly increase in all segments. The trend observed from 2018 to 2028 remains consistent throughout the entire forecast period. There is a continuous increase in the indicator across all segments. Notably, the Search Advertising Desktop segment achieves the highest value of 137.77 U.S. dollars at 2028. The Statista Market Insights cover a broad range of additional markets.

Google UK Limited reported operating profits of 362.2 million British pounds in the fiscal period that ended December 31, 2022. Google UK Limited changed its financial year end to December 31 from June 30. Google generates the majority of its revenue through advertising.

In 2023, Google Cloud revenue amounted to 43.22 billion U.S. dollars, accounting for over 10 percent of Google's total revenues. The company's Cloud segment primarily generates revenue through the Google Cloud Platform (GCP), which offers a suite of cloud computing services running on Google infrastructure. Competition on the cloud In recent years, GCP has seen tremendous growth with increasing demand for cloud computing to keep pace with digital transformation. The development is fueled by the increasing demand for cloud-based services, dependency on cloud infrastructure for scalability, and the growing popularity of microservices. Tough competition from the largest cloud providers Microsoft Azure and Amazon Web Services has forced all cloud providers to continually innovate and offer new services to gain or retain existing customers. AI on the cloud The growing demand for new technologies like artificial intelligence (AI) will further fuel the demand for cloud infrastructure. AI development, deployment, and management for various applications are more straightforward on the cloud, with the availability of tools for data storage, data processing, and easy integration of machine learning in AI models. One of the critical factors that would drive the development of AI on the cloud is the providers' offer of a pay-as-you-go pricing model.

It was calculated that the digital advertising spending worldwide amounted to 549.51 billion U.S. dollars in 2022. The source projected that by 2027, the spending would reach 870.85 billion dollars.

Advertising spending - additional information

Advertising can utilize almost any form of media to meet its needs. Media including print, television, radio, cinema, outdoor, mobile and digital have all been targeted by advertisers. Global advertising spending has been constantly increasing (with the exception of 2020) since 2010, and is forecast to round up to nearly 856 billion U.S. dollars in 2023. Due to advances in technology and consumer preferences, not all media are as heavily invested in as others. As of 2022, the internet was considered the most important medium for advertisers, accounting for 62 percent of total media ad spend in 2022. Internet expenditures are projected to record a growth of 8.4 percent in 2023.

Digital advertising spending worldwide – which includes both desktop and laptop computers as well as mobile devices – stood at an estimated 522.5 billion U.S. dollars in 2021. This figure is forecast to constantly increase in the coming years, reaching a total of 835.82 billion U.S. dollars by 2026. Mobile internet advertising is a heavily invested sub-sector of the digital advertising industry. Mobile internet advertising spending is forecast to increase from 276 billion U.S. dollars in 2020 to nearly 495 billion U.S. dollars in 2024. Following this pattern, mobile advertising spending in the U.S. is also forecast to grow in the coming years. Mobile ad spending in the U.S. is projected to gain nearly 25 billion U.S. dollars in 2023.