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 $70.2 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 13.4 percent more than the previous year, but it is also the first time it’s expected to surpass the $70-billion mark. Despite the impressive annual increase, it’s still significantly slower than 2021’s growth rate, which surged to 40.4 percent.

Google’s ad revenues are projected to rise a further 8.2 percent in 2023 to hit $75.9 billion, before increasing another 6.7 percent to top $81 billion in 2024. 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 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 worldwide revenue for Google in Q3 2022 came in at $69.1 billion, of which $54.5 billion was from Google advertising. This includes revenue from Google search, ads on YouTube, and the Google network. This figure represents a 2.54 percent year-over-year increase. 

Breaking down Google’s revenue from Q3 2022 even further, we see that gross Google ad revenues from search alone were at $39.5 billion, up from $37.9 billion in the third quarter of the previous year. This marked a 4.25 percent annual increase. Meanwhile, gross revenue from YouTube ads came in at just under $7.1 billion, a slight 1.86 percent decrease from the $7.2 billion in Q3 2022.

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