Google India’s Ad Revenue Rises 12.5% YoY To INR 28,040 Cr In FY23

Google India’s gross ad revenue reportedly increased 12.49% year-on-year (YoY) to INR 28,040 Cr in the financial year 2022-23 (FY23), according to the tech giant’s filings with the Registrar of Companies (RoC).

In FY22, Google’s Indian subsidiary reported a gross ad revenue of about INR 24,926.5 Cr, registering a 79.4% jump YoY.

Google India renders IT and IT-enabled services to its group companies engaged in the internet industry. It is also a third-party reseller of the advertising space of the Google Adwords programme and other advertising products and services. 

As per an ET report, Google India’s operating revenue declined marginally to INR 9,275 Cr in FY23 from INR 9,286 Cr in the previous year. The company has also demerged its IT services business to an independent entity, Google IT Services India.

The publication, citing sources, said that the move was designed to help Google India focus on its main business divisions of advertising and enterprise.

Meanwhile, as per the filings, Google India reportedly paid an equalisation levy of INR 1,543 Cr to the government for purchasing online advertisement space from Google Asia Pacific. 

The Indian subsidiary of the tech giant buys ad inventory from Google Asia Pacific and resells it to domestic advertisers. 

As per the publication, Google India paid INR 22,845 Cr to Google Asia Pacific for the purchase of ad inventory in FY22.

While Google continued to dominate in the digital advertising market through Google Search, YouTube, and Chrome, the Delhi High Court in August last year directed the tech giant to crackdown on ads that infringe upon trademarks. 

The HC said that prima facie, it appeared that the company encouraged search keywords related to trademarks to target ads. It rejected Google’s plea of being entitled to intermediary exemptions. 

While Google India’s ad revenue grew at a lower pace in FY23 compared to the previous year, its biggest rival Meta reported 13% YoY increase in gross advertising revenue to INR 18,308 Cr in FY23. 

As per a recent report, India’s advertising expenditure was projected to have grown 11.8% to reach INR 1,09,900 Cr in 2023, positioning the country for potential entry into the top 10 global ad markets by 2028.

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