Google Ad Revenue Growth to Drop to Single Digits This Year
Mobile ad revenues, YouTube revenues continue faster climbs
April 20, 2016
Google’s worldwide ad revenues growth will drop to single-digit rates this year, eMarketer estimates, after years of faster increases. After a 15.0% climb in worldwide ad dollars last year, the internet giant—whose parent company, Alphabet, will report Q1 earnings this week—will see 9.0% growth this year to $57.80 billion in ad revenues.
Even that slowing growth rate still leaves Google with by far the largest share of digital ad revenues of any company in the world; this year, eMarketer predicts, 30.9% of net digital ad revenues will go to Google. Facebook will be in second place with 12.0%. Google’s lead is even stronger as a share of worldwide net search ad revenues, at 55.2%.
Google also takes in a third of all mobile internet ad revenues in the world, and mobile is helping to power the company’s overall ad revenue growth rate. This year, for example, Google’s net worldwide mobile internet ad revenues are expected to rise more than four times as fast as its ad revenues overall. By 2018, mobile ad streams will still be growing nearly twice as quickly as the total.
YouTube also figures significantly in Google’s worldwide ad revenue growth. Net ad revenues at the video site were up 40.6% last year, and will continue to grow by 21.1% this year—more than twice the overall growth rate for ad revenues at Google.
YouTube revenues are growing more quickly in the US than elsewhere in the world, and are accounting for a larger share of Google’s ad revenue stream there each year. This year, eMarketer forecasts, YouTube will continue 10.8% of Google’s net US ad revenues, up from 9.1% last year. By 2018, the end of our forecast period, that share will rise to 12.4%.
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