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Google Ad Spending Tops $2 Billion in 2011

john-rampton
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google-money-bagsDid you know that Google has doubled it's advertising budget in the past year to more tha $1.5 billion? I would imagine that they are spending all this on Google+ and other related products that Google is pushing on all of us. If you factor in the recently acquired Motorola Mobility Holdings and Google's ad spend together, that's $2.1 billion a year in ad spend.

AdAge put out a report that put report that listed Google and Motorola No. 34 on their list of the 100 Leading National Advertisers for 2011. Advertising and promotional spending as a percentage of Google's revenue reached 4.1 percent in 2011, up from 2.6 percent in 2010 and 1.5 percent in 2009. Google attributed this to sales and marketing expenses in the past year.

This number may be even higher in 2012. Google's 10-K filing for the year ended December 2011 noted:

"We expect that sales and marketing expenses will increase in dollar amount and may increase as a percentage of revenues in 2012 and future periods as we expand our business globally, increase advertising and promotional expenditures in connection with new and existing products, and increase the level of service we provide to our advertisers ... and other partners."

Motorola bumped up their spending to $560 million (4.3 percent of revenue) in 2011 from $393 million (3.4 percent of revenue) in 2010 and $264 million (2.4 percent of revenue) in 2009. Combine Google and Motorola, and they add up to $2.104 billion in 2011, which includes an estimated $1.005 billion that will be spent in the U.S. alone.


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