Google India surpasses the billion-dollar sales mark in the financial year 2017, in the year when the local business of the search engine expanded at half the pace of the prior year.
Google’s rival business: Facebook, however, nearly doubles its revenues indicating an increase in the preference by marketers to advertise on social media platforms instead of search engines.
In the year through March 2017, Google India posts a turnover of worth Rs. 7208.9 Crore which is 22% more than previous year’s revenues: Rs. 5904 Crores. Sales had increased by 44% in fiscal 2016.
One of the major revenue centre’s of this Technology Giant is advertising services displaying ads next to search results however, Google has segregated itself into many Profit centres like cloud computing services and several Internet-related products and services as well. While Google is having the maximum market share (two third) getting the marketers to spend their digital budget into Google’s advertising services, the Indian unit is just over 1% of the total parent revenue. The company did not disclose profit numbers in its annual return filed with the Registrar of Companies on Thursday.
Facebook: the Rival Business
Facebook posted a whopping hike of around 93% in their India turnover to Rs. 341.8 Crore, even as net profit is increased by nearly 31% from 31 Crore to Rs. 41.6 Crore.
Google, along with Facebook, is the most prominent force and critical to the advertising industry. They define the digital advertising industry,” said Sam Balsara, chairman of advertising and PR firm Madison World.
While television still leads the ways of marketing and it is by far the most popular way of advertising in India, the growing demand for smartphones considering their affordability complimentary to the use of social media network, advertisers are driven to spend more in Social Media Marketing than the traditional media.
The brands have been slower to incorporate digital media into less-developed markets such as India lag behind in digital media consumption by the mass population as compared with the developed world.
There has been a substantial increase in digital ad spending to $1.21 Billion and mobile ad spending is expected to increase by around 85%, this year, according to eMarketer’s latest media ad spend forecast.
“We continue to see strong growths in digital media ad spending. Google, being one of the lead players in the space is riding the wave. The digital space is seeing a lot of new players, especially over the top or OTT platforms offering exciting content. This will add further momentum to ad spends,” said CVL Srinivas, country manager at WPP India and CEO of GroupM South Asia.
While Google & Facebook compete for digital supremacy, both platforms are powerful for advertising that cater to various needs of businesses. Google & Facebook may seem to evolve as ‘duopoly’ in the Indian Economy in the upcoming years as they continue to rule over Digital Marketing!
GROWTH GRAPH OF GOOGLE AND FACEBOOK (SOURCE: ECONOMIC TIMES)
Source: The Commerce Insider