Google has reported a 9% growth in ad revenue to $57.8bn during 2016. That’s a drop compared to last year’s 15% increase and much of it is due to strong competition from Facebook. However, the company remains on top when it comes to the digital ad market, with a 30.9% share according to eMarketer.
Seen as a good start for its Alphabet brand, the company generated $18bn in ad revenue during Q1 2016. A majority of this revenue can be attributed to in-app ads. However, the results fell short of analyst expectations.
Google net ad revenue projections
Mobile is of course one of the core drivers of Google’s advertising business. With strong adoption of mobile technologies, it is set to represent 59% of Google’s net digital ad revenue in 2016 and generate a 40% year-on-year growth in mobile ad revenue. By 2018, the share of net mobile ad revenue will increase 72% to $48bn. Mobile ad spend is predicted to reach the $167bn mark, with China and the US responsible for $97bn of that figure.
In addition, the company is focused on expanding its AI technologies for mobile search.
YouTube is predicted to generate $5.18bn or almost 9% of Google total net ad revenue. That’s an increase of 0.08% from 2015. Video on mobile is another key driver of the industry as technologies are enabling an ever better viewing experience for the end user. Viewing times were up 50% year-on-year.
Google CEO Sundar Pichai recently spoke about the company’s move to rival Facebook more successfully by employing improved user tracking features.
Services on Google where users are now logging in are providing valuable information and data to generate actionable insights. Pichai confirmed that many new logged-in users are coming through mobile. Surely, understanding a Google user better will make Google ads more attractive for marketers.