Facebook and Google make more than top 10 media firms put together
Together, Facebook India and Google India corner up to 80 per cent of the domestic digital advertisement revenues.
That online advertising was gradually chipping away from other media was known, but the latest advertisement revenues from the India operations of BigTech companies Facebook and Google has put traditional media companies on notice.
At Rs 23,213 crore, their combined ad revenues is higher than the combined ad revenues of the top 10 listed traditional media companies at Rs 8,396 crore, an analysis by sources.
Together, Facebook India and Google India corner up to 80 per cent of the domestic digital advertisement revenues.
Both Facebook India and Google India, however, lag on aspects such as net revenue and net profit, when compared to traditional media companies. For example, while Facebook India reported a net revenue of Rs 1,481 crore, and Google India reported a net revenue of Rs 6,386 crore, Zee Entertainment Enterprises reported a net revenue of Rs 7,729 crore.
The main reason for this is that Facebook India and Google India operate on an advertisement reseller model in India, which means that they buy inventory from a global subsidiary of the firm's US headquarters and then re-sell that ad space to their client in India. For this, they pay a share of their gross advertisement revenue to the global subsidiary from whom they purchase the ad space.
Among the top ten listed traditional media companies are media houses such as TV18 Broadcast, DB Corp, Jagran Prakashan, Entertainment Network, and TV Today Network, which reported advertisement revenues of Rs 1083.18 crore, Rs 1008.4 crore, Rs 886 crore, Rs 52 crore, and Rs 580 crore, respectively for the last fiscal.
Industry sources said that while Facebook India pays up to 90 per cent of their gross advertisement revenues to the global subsidiary, Google India pays up to 87 per cent.
The growth in gross advertisement revenues, a Meta spokesperson said, could be attributed to India's shift towards digital, which reflected not just in consumers using digital tools for purchase of everyday needs, but also deep digital engagement with businesses and brands.
