Google's Amazing Worldwide Ad Revenue
An analysis by Statista brought out how massive Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG)'s advertising revenues are. The search giant's ad revenues in 2016 were higher than what Germany, Britain and France, combined, spent on advertising.
As per World Bank data, GDP at purchasing power parity was 4.028 trillion international dollars for Germany, 2.80 trillion international dollars for the U.K. and 2.77 trillion international dollars for France, making them the first second and third ranking European countries in terms of GDP.
Google's parent Alphabet reported second-quarter adjusted earnings per share that beat estimates. Revenues rose year over year and also exceeded expectations.
Advertising revenues rose over 18 percent to $22.67 billion or roughly 88 percent of the total revenues. Other revenues, which comprise its hardware and cloud business, contributed $3.09 billion to the top line.
Google's ad revenues are expected to surpass the $90 million mark this year, which could catapult the company to the top slot in terms of ad sales, according to Statista.
In an interesting take, Statista said Google's ad revenues of $79.4 billion for 2016 exceeded the total advertising expenditure of all countries, except the U.S.
Compared to Google's ad revenues of $79.4 billion in 2016, the U.S. spent about $190.8 billion on advertisement. Advertising expenditure of China, the second largest economy, at $75 billion was less than Google's ad revenues by $4.4 billion.
Japan was a distant fourth, with advertising expenditure of $41.9 billion. The U.K. and Germany, two of the largest economies of Europe, spent $24.2 billion and $22 billion, respectively, on advertisement.
Brazil's advertising expenditure was $13.1 billion and France spent $11.4 billion on advertising. South Korea and Australia spent $11.3 billion and $10.9 billion, respectively.
It doesn't look like Google's ad revenues will slow down a bit, as the company focuses on Cloud, AI and mobile and video ads to keep the momentum going. It may not be long before the company steam rolls past the ad spending of the U.S.
See also: Munster: 'Google Is Betting On The Right Long-Term Trends'
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