Google India has crossed $1.11 billion dollar sales mark (turnover of Rs 7,208.9 crore) in the year March, 2017. These figures shows a jump of over 22.1% from the previous year’s Rs 5,904 crore.
Sales has witnessed an expansion of 44% this fiscal as per the report by TOI.
Although the local business of Google India grew at half-a-pace this year in comparison to the last. It’s rival Facebook however nearly doubled its revenues in the country indicating preference by marketers to advertise on platforms other than Google.
Google also provides other Internet related services in India such as cloud based computing, digital payments etc. but the major revenue comes from its adverting sector where it displays ads next to the search results.
Although in various sectors, Google enjoys a monopoly, yet its Indian arm’s revenue in nowhere close to the parent, which is just around 1% of it. However the company did not disclose its profit numbers in the latest filing with Registrar of Companies.
Facebook has seen a net increase of 93% in its India turnover to Rs 341.8 crore, even as net profit rose nearly 31% to Rs 40.6 crore from Rs 31 crore. After Google, Facebook is the second most critical advertising industry.
In a developing country like India, TV and newspaper are still considered as the most popular medium of advertisements, but through smartphones becoming more affordable, the penetration of digital advertising is increasing at a fast pace.
The mobile ad spending may increase upto 85% according to eMarketer’s latest data.
“We continue to see strong growths in digital media ad spending. Google being one of the lead players in the space is riding the wave. The digital space is seeing a lot of new players, especially over the top or OTT platforms offering exciting content. This will add further momentum to ad spends,” said CVL Srinivas, country manager at WPP India and CEO of GroupM South Asia.
(With inputs from Times of India)