Facebook India Online Services, the Indian arm of social media giant Meta, has recorded a staggering 74% growth in gross ad revenue at Rs 16,189 crore for FY22 compared to Rs 9,326 crore in the previous fiscal. The information is based on the company's annual filing with the Registrar of Companies (RoC).
The company, which owns platforms like Instagram, and WhatsApp, has seen its net profit zoom by 132% to Rs 297 crore. It paid an equalisation levy of Rs 907 crore during the fiscal under review against Rs 518 crore in the previous fiscal.
The company incurred a cost of Rs 15,120 crore on buying ad inventory from a group company. In the previous fiscal, it paid Rs 8638.5 crore to buy ad inventory.
Facebook India Online Services acts as a reseller of advertising services to Indian customers through a reseller agreement with another group company and generates revenues through the resale of advertising inventory on Facebook.
The company also generates revenue through service agreements with another group company for the provision of IT-enabled business process outsourcing services to the Facebook Group.
Facebook India's total income jumped 57% to Rs 2,324 crore from Rs 1,481 crore. Net advertiser reseller revenue rose 40% to Rs 889 crore from Rs 636.5 crore. The IT-ITES services segment contributed revenue of Rs 1,420 crore, which is a 68.22% increase over Rs 844.12 crore in the previous fiscal.
Media agencies have projected that the digital is expected to overtake TV in terms of advertising expenditure. According to GroupM's 'This Year, Next Year' report, digital is expected to collect ad spends worth Rs 48,603 crore to become the largest advertising medium ahead of TV, which is projected to garner Rs 42,388 crore.
Likewise, Pitch Madison Advertising Report 2022 has also projected that digital will surpass TV to become the largest advertising vehicle in the country. The report states that Digital AdEx will grow by 30% to touch Rs 33,070 crore while TV is expected to grow by 14% to close at Rs 32,100 crore.
In FY21, Google and Facebook earned combined gross ad revenue of Rs 23,212.5 crore compared to Rs 18,054.9 crore in the previous fiscal. The combined gross ad revenue of the two firms is more than the ad revenue of top media companies put together.