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 a common marketing method that Google is often considered to be the market leader in online advertising and has been for more than ten years. In fact, 27.7 percent of the total US digital ad spend in 2022 is expected to be on Google. 

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 is expected at $60.7 billion in 2022. 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.

Not only is Google’s ad revenue in 2022 expected to be 10.5 percent more than the previous year, but it is also the first time it’s expected to surpass the $60-billion mark. 

Google’s ad revenues are projected to rise a further 9.5 percent in 2023 to hit $66.47 billion. In the five years from 2019 to 2023 (both years inclusive), the search engine giant’s annual ad revenues are expected to grow by an average of 12.5 percent per year.

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Google Revenue Breakdown

Already, the latest earnings release by Alphabet, Google’s parent company, shows that Google is en route to hitting new revenue highs.

Total revenue for Google in the final quarter of 2021 came in at $75.3 billion, of which $61.2 billion was from Google advertising. This includes revenue from Google search, ads on YouTube, and the Google network. This figure represents a 32.6 percent year-over-year increase. 

Breaking down Google’s revenue from Q4 2021 even further, we see that gross Google ad revenues from search alone were at $43.3 billion, up from $31.9 billion in the final quarter of the previous year. This marked a 35.7 percent annual increase.

Gross revenue from YouTube ads hit just over $8.6 billion, a 25.4 percent increase from the $6.9 billion in Q4 2020.

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