The internet lives and breathes on advertisements. It is the biggest source of revenue for tech giants like Facebook and Google.
Google released its second quarter earnings today showing how much of the company’s revenue comes from adverts. Unsurprisingly, Alphabet (Google’s parent company) makes more from advertising than any other company in the world.
Alphabet is expected to make $73.8 billion in net digital ad sales in 2017, according to internet research firm eMarketer. About 33% of the total ad revenue in the world goes into Google’s pockets.
Facebook Trailing Behind
Second place goes to Facebook which is expected to make $36 billion in ad revenue this year, around $40 billion less than Google.
Here’s the breakdown of ad revenue in 2017 by individual companies:
Mobile Ad Revenue
Naturally, mobile internet users dwarf regular desktop/laptop users by a large margin. Majority of the ad revenue of these companies comes from mobile users. Facebook especially relies on mobile ad revenue with $32 billion (or 88%) of its $36.3 billion ad revenue coming from mobile users.
Google leads Facebook here as well with $49.7 billion revenue coming from mobile adverts. This is 67% of Google’s total ad revenue, up from $38 billion in 2016.
The mobile ad revenue increased by 32% year on year from 2016 to 2017 for Google. The company’s mobile ad revenue has also been growing steadily for years.
Personalized News Feed
Google recently launched its new personalized news feed for everyone. It will offer tailor made news for you depending on your preferences and which websites you frequent. You also have the option to follow individual topics to get updates about them in your feed.
Unfortunately it isn’t going so well with the new app running into problems on Android. Many users have remarked that the issue lies in the app’s homepage widget not loading up properly.