Google’s advertising revenue could top $30 billion in Q4 2018 if it continues at the current rate of growth, according to the latest company reports. Between Q1 2014 and Q3 2018, the company registered a compound quarterly growth rate (CQGR) of 4.1%. If this rate of growth continues beyond the $29.0 billion recorded in Q3, Google should reach $30.1 billion in advertising revenue during the final three months of 2018.
However, other Alphabet revenue, which includes in-app purchases and hardware, has grown at a faster rate. Between Q1 2014 and Q3 2018, it recorded a CQGR of 7.0%. As a result, other Alphabet revenue as a share of the total grew 5.0 percentage points over this period. However, advertising continues to dominate, making up 85.8% of Alphabet’s total revenue in Q3 2018.
Google received nearly 45% of all online advertising spend in 2017, a figure that is likely to rise as the tech giant re-enters the highly lucrative Chinese market. However, digital newspapers in the UK have attempted to battle its dominance by forming a consortium to offer advertisers a comparable digital reach.
Credit: WARC