Google Ad Revenue: Squeezing Ahead but Who Will Be the Squeezee?
March 31, 2016
I read “Google makes One Third of Its Global Revenue from Advertisements.” I have been off base because I assumed that Google derived 90 percent of its revenue from online advertising. I stand corrected even if I am not 100 percent confident in the report in Propakistani.
Set the numbers aside for a nonce. If one considers the relative relationship in ad revenue among Facebook, Google, and Yahoo (poor old Yahoo), the write up hits on an important point:
Google’s share in the global ad market is also diminishing. Its percentage in the net share of the total global online ad revenue has actually decreased to 33.3 percent. The figure was 34.6 percent in 2014. Analysts from Statista have predicted an even greater decline in market share in 2016, down to 30.9 percent.
Okay, Statista may be the source of the insight.
From my point of view, Google will have to figure out what to do about Zuck and his band of former Xooglers. If Facebook continues to enjoy robust growth, life might become more interesting at the Alphabet Google thing.
One other thought: It might become more expensive to run ads on the Google platform unless the sale of Loon balloons soars. Revenue issues may ground the fleet in the future as part of the new fiscal order at the search giant.
Stephen E Arnold, March 31, 2016
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