Google India's gross ad revenue jumps 79% to Rs 24,926.5 crore in FY22

Tech giant Google India has posted a 79.4% growth in gross advertisement revenue at Rs 24,926.5 crore for the fiscal ended 31st March 2022 compared to Rs 13,886.7 crore in the previous fiscal, according to financial data accessed by business intelligence platform, Tofler.

The company spent Rs 22,845.6 crore for purchasing advertisement space from its fellow subsidiary Google Asia Pacific. This is an 86% increase over the previous fiscal's figure of Rs 12,262.2 crore.

Facebook India Online Services, the Indian arm of social media giant Meta, has recorded a 74% growth in gross ad revenue at Rs 16,189 crore for FY22 compared to Rs 9,326 crore in the previous fiscal.

Google and Facebook are a duopoly in the burgeoning digital advertising market. The combined gross ad revenue of Google and Meta India stood at Rs 41,115 crore in FY22, which is a 77% increase over the previous fiscal's figure of Rs 23,212.7 crore.

According to industry sources, both Google and Facebook earn a large chunk of their gross ad revenue from Small and Medium Businesses (SMBs) followed by corporate advertisers.

Google India acts as a third-party reseller of advertising space for the Google Ads program and other Google advertising products and services in India, to advertisers seeking to market their products and services to consumers and business users over the internet.

The tech giant's gross ad revenue is more than the combined advertising expenditure (AdEx) of print, radio, outdoor, and cinema. As per Pitch Madison Report 2022, the combined AdEx of the four mediums is projected at Rs 24,115 crore for the calendar year 2022.

Google is a dominant player in digital advertising across ad formats. YouTube is the pre-eminent video streaming platform in the country. Furthermore, Android is the dominant mobile operating system in the country.

Google India's total revenue expanded by 48% to Rs 9439.3 crore from Rs 6386.2 crore. Expenditure increased 46.39% to Rs 7755.2 crore from Rs 5297.4 crore. Net profit rose 53.32% to Rs 1238.9 crore from Rs 808 crore.

Revenue from rendering of information technology and enabled services was up 29.35% to Rs 2137.8 crore from Rs 1652.7 crore. Revenue from rendering of information technology services increased 71% to Rs 4978.5 crore from Rs 2913.3 crore.

The company's net sale of advertising space grew 28% to Rs 2080.9 crore from Rs 1624.5 crore. Revenue from net sale of enterprise products increased 33% to Rs 88.8 crore from Rs 66.6 crore.

Gross sales from the sale of enterprise products jumped 39% to Rs 840.4 crore from Rs 606.6 crore. The company spent Rs 751.6 crore for the purchase of services relating to enterprise products against Rs 540 crore in the prior fiscal.

The company is engaged in rendering Information Technology (IT) services and IT-enabled services (ITES) to its group companies engaged in the internet industry.

Google India's total employee benefits expense increased 54% to Rs 4988.1 crore from Rs 3230.8 crore. Advertising promotional expenses almost doubled to Rs 265.5 crore from Rs 132.8 crore.