Google India’s gross ad revenue for FY23 increased by 12.49% YoY to Rs 28,040 crore, solidifying its dominance in the digital advertising market through Google Search, YouTube, and Chrome, as per the company’s financial details sourced from the Registrar of Companies (RoC).
In FY22, the tech giant’s gross ad revenue had surged by almost 80% to Rs 24,926 crore from Rs 13,886 crore in the year-ago period.
Google India has three revenue segments: resale of advertisement space, sale of enterprise products, and providing IT and IT-enabled services to its group companies.
Google India’s FY23 operating revenue decreased by 0.11% to Rs 9,275 crore from Rs 9,286 crore in FY22. The company has demerged its IT services business to an independent entity, Google IT Services India.
Also read | Tech giants’ digital ad revenue surges 16% to Rs 55,000 crore in FY23
The National Company Law Tribunal approved the transfer of Google India’s IT business to Google IT Services India in May last year. According to sources, the move was designed to help Google India focus on its main business divisions of advertising and enterprise.
The appointed date for the transfer of Google India’s IT services business to Google IT Services India was April 1, 2021.
The filings show that Google India paid an equalisation levy of Rs 1,543 crore to the government for purchasing online advertisement space from Google Asia Pacific.
The Indian entity buys ad inventory from Google Asia Pacific and resells it to advertisers in the country. In FY22, it had paid Rs 22,845 crore to Google Asia Pacific for the purchase of ad inventory.
Google’s main competitor, Facebook Online India Services, the India arm of social media giant Meta, had recorded a 13% growth in gross ad revenue at Rs 18,308 crore for FY23 compared to Rs 16,189 crore in FY22.
According to a report by IPG Mediabrands-owned media investment firm Magna Global, the overall ad spend in India stood at Rs 1,09,882 crore in 2023, up 11.8% compared to 2022, with digital ad spending growing by 14.2% to top Rs 49,883 crore.
YouTube, with 573 million users, is a significant contributor to Google India’s gross ad revenue, according to industry sources.
In an earlier interaction with ET, TAM Media CEO LV Krishnan said YouTube, with its reach and share of usage, has attracted maximum audiences and ad spends in the digital ad market.
