Why is Google’s ad revenue decreasing? We Googled it

by | Jun 23, 2020

(Photo courtesy blueshiftwebservices.com)

Revenue not found: For the first time ever, Google will see a decline in advertising revenue growth. According to eMarketer, Google’s US ad revenue will drop 5.3% this year.

It sounds bad, but don’t worry – Google isn’t exactly hurting for cash. EMarketer forecasts that Google will still earn $39.58 billion in US ad revenue this year.

  • Compare it to: 2019. Google made $41.80 billion in US ad revenue last year.

 

Why is Google’s ad revenue decreasing? We Googled it. Turns out, Google is especially reliant on revenue from the travel industry, one of the sectors hit the hardest by the coronavirus crisis. Many travel-related businesses were forced to cut their marketing budgets early on during the crisis because of government restrictions and a huge decrease in demand.

  • For example: The online travel shopping company usually spends $5 billion per year to advertise on Google. This year, it expects to spend less than $1 billion.

 

Facebook and Amazon aren’t going anywhere: In contrast to Google, Facebook, and Amazon, who are less reliant on the travel industry, actually expect their advertising revenue to grow in 2020.

  • Facebook’s ad revenue is expected to grow by 4.9% this year
  • Amazon’s ad revenue is expected to grow by a whopping 24% this year

Facebook and Amazon’s growth during the pandemic may help them compete with Google’s dominance in the digital advertising market in the future.

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