As an ecommerce business owner (or an aspiring one), it’s important to understand online marketing platforms well to know your available options. This includes running online ads and placing them where your target audience is.

One of the best places to run ads is on the world’s most popular search engine, Google. In fact, it’s such a common marketing method that Google is often considered to be the market leader in online advertising and has been for more than ten years. In fact, 29 percent of the overall digital ad spend in 2021 is expected to be on Google ads. 

Year-over-year increases of Google ad revenues are clear evidence of its popularity as an ad platform. According to the latest forecast from industry analysts, Google’s revenue from advertising is expected at $50.23 billion in 2021. This is a net figure that includes Google ads seen on desktops, laptops, smartphones, tablets, and other devices, as well as varying ad formats including those on YouTube, a Google entity.

Not only is Google’s revenue in 2021 expected to be 18.5 percent more than the previous year, but it is also the fastest Google ad revenue growth in three years.

Google’s revenue is projected to rise a further 11.8 percent in 2022 to hit $56.15 billion. In the four years from 2019 to 2022 (both years inclusive), the search engine giant’s annual ad revenues are expected to grow by 34.3 percent.

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Google Revenue Breakdown

Already, the latest earnings release by Alphabet, Google’s parent company, shows that Google is en route to hit new revenue highs.

Total gross revenue for Google in the first quarter of 2021 came in at $55.3 billion, of which $44.7 billion was from Google advertising. This includes revenue from Google search, ads on YouTube, and the Google network. This figure represents a 32.3 percent year-over-year increase. 

Breaking down Google’s revenue from Q1 2021 even further, we see that gross Google ad revenues from search alone was at $31.9 billion, up from $24.5 billion in the first quarter of the previous year. This marked a 30 percent annual increase.

Gross revenue from YouTube ads hit just over $6 billion, a whopping 48.7 percent increase from the $4 billion in Q1 2020.

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