Google plays a central role in advertising. The story unfolds in the following three aspects:
just what it is that makes Google so prominant and omnipresently annoying?
First, Google itself generates more than 75% of its revenue from online advertising in 2023—by delivering both performance and brand advertising that appears on Google Search & other properties, YouTube, and Google Network partners’ properties (“Google Network properties”). Other main income: cloud, subscriptions, platforms (mainly Google Play), and devices(i.e. Pixel family).
In 2023 fiscal year, Google consolidated 307,394 million USD revenue, with a 9% increase from 2022. The revenue gain distribution is
Google’s revenue distribution as of 2023
Second, now let’s put Google into the general advertising landscape. Digital advertising as a whole (including audio/influencer/etc.) spent 679.7 billion USD in 2023, in which, search advertising spent 279.3 billion USD. As benchmark, customer data platform industry revenue worldwide is only about 2.3 billion USD…
Google Gossip
Google is navigating turbulent waters, and the stakes are high.
Cookie Confusion: Google’s saga with third-party cookies has been a rollercoaster. Initially committed to phasing them out by 2022, Google has delayed and retracted this plan multiple times.
Most recently, in July 2024, Google officially canceled its plan to eliminate cookies, citing challenges in finding a balance between user privacy, advertiser needs, and regulatory expectations. Instead of a straightforward removal, Google will allow users to decide the fate of cookies through new controls in Chrome. This decision has left the $600 billion digital advertising industry in a state of uncertainty, as the future now depends on user choices, which could dramatically reshape the digital landscape.
Antitrust Avalanche: In a landmark ruling, a federal judge declared Google a monopolist, a decision that could rewrite the rules of the digital economy. The ruling stems from Google’s practice of paying billions to be the default search engine on devices, a strategy that has effectively crushed competition and solidified Google’s dominance in search. With additional antitrust cases looming, including one targeting Google’s ad tech business, the tech giant’s future is under intense scrutiny. This ruling may set a precedent for other Big Tech companies, signaling a potential shift in how digital monopolies are regulated.