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Google India's Gross Ad Revenue Climbs Rs.28,040 Crore in FY23

CIO Insider Team | Tuesday, 16 January, 2024
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Google India's gross ad income for FY23 climbed by 12.49 percent YoY to Rs 28,040 crore, strengthening its dominance in the digital advertising industry through Google Search, YouTube, and Chrome, as per the company's financial statistics available from the Registrar of Companies (RoC).

The tech giant's gross ad revenue increased by nearly 80 percent to Rs 24,926 crore in FY22 from Rs 13,886 crore in the same period the previous year.

Reselling advertising space, selling corporate goods, and offering IT and IT-enabled services to its group firms are Google India's three revenue streams.

Operating revenue for Google India fell by 0.11 percent in FY23 to Rs 9,275 crore from Rs 9,286 crore in FY22. The corporation has demerged its IT services business to an independent entity, Google IT Services India.

In May of last year, the National Company Law Tribunal gave its approval for Google India's IT operation to be transferred to Google IT Services India. Reports claim that the change was made to allow Google India concentrate on its core business segments, which are enterprise and advertising.

April 1, 2021 was the scheduled date for the transition of Google India's IT services division to Google IT Services India.

According to the documents, Google India paid the government an equalization levy of Rs 1,543 crore in exchange for Google Asia Pacific's online ad space.

The Indian company purchases Google Asia Pacific's ad inventory and then resells it to national marketers. It had given Google Asia Pacific Rs 22,845 crore in FY22 in exchange for the purchase of ad inventory.

Reselling advertising space, selling corporate goods, and offering IT and IT-enabled services to its group firms are Google India's three revenue streams.

Facebook Online India Services, the Indian division of social media behemoth Meta, is Google's primary rival. Its gross ad income increased by 13 percent to Rs 18,308 crore in FY23 from Rs 16,189 crore in FY22.

The total amount spent on advertising in India was Rs 1,09,882 crore in 2023, up 11.8 percent from 2022, according to a report by Magna Global, a media investment agency owned by IPG Mediabrands. Digital ad expenditure climbed by 14.2 percent to reach Rs 49,883 crore.

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