Google rakes in $237.8 billion ad revenue in 2023
Second-smallest growth in 2 decades, trails behind rivals
In a digital landscape where brands and marketers have poured a staggering $3 trillion into digital advertising over the last five years, industry titan Google has faced a notable decline in ad revenue growth.
According to data from AltIndex.com, Google’s advertising revenue experienced a modest 5.9% year-over-year increase, culminating in $237.8 billion for the year 2023 – marking the second smallest growth in the past two decades.
Despite maintaining its status as the dominant force in digital advertising, Google finds itself in the wake of competitors like Facebook, Amazon, and TikTok in ad revenue growth.
Top 10
The 10 largest digital advertisers worldwide, including Google, Facebook, Amazon, TikTok, Tencent, Microsoft, Baidu, JD.com, Apple, and LinkedIn, amassed a staggering $492 billion in the previous year. Google’s share of this total was $237.8 billion, making it half the combined figure.
However, Google’s 5.9% growth pales compared to the leaps made by other industry giants.
Facebook experienced a robust 16% growth in ad revenue in 2023, while Amazon and TikTok soared with growth rates of 24% and 55%, respectively.
Google’s growth was 10 times smaller than TikTok’s and four times less than Amazon’s, highlighting a substantial gap in their respective trajectories.
This marks the second slowest growth for Google in the past two decades, with the pandemic-stricken year 2020 being the only period with a comparable slump. Before the global health crisis, Google consistently achieved an average annual ad revenue growth rate of 20%.
Peak years
Noteworthy years include 2008, 2010, and 2011, which stood out as the peak periods. The growth rate in 2023 was a far cry from the soaring figures of the past.
Despite the sluggish growth, analysts project a more promising future for Google’s ad revenue. A Statista survey indicates an anticipated 35% growth, propelling the tech giant’s ad revenue beyond $340 billion by 2027.
Comparatively, Microsoft is expected to see a 30% growth, reaching $16.3 billion in the same period. Amazon and LinkedIn are forecasted to experience even more substantial growth rates at 60% and 75%, respectively.
While major digital advertisers are expected to witness impressive growth, none come close to the staggering projections for TikTok.
The short-form video app is poised to rake in $54 billion from advertising in 2027, marking a remarkable 198% increase from the previous year. This positions TikTok for three times the ad revenue growth of Amazon and LinkedIn and an unparalleled five times the growth seen by Google and Microsoft.
Featured image: Google finds itself in the wake of competitors like Facebook, Amazon, and TikTok in ad revenue growth. Image: Greg Bulla
