Google Controls 5.85% of Worldwide Advertising
According to some simple excel calculations (see below), Google controls about 5.85% of the worldwide advertising billings. According to a recent article I was reading, ZenithOptimedia has 2012 advertising expenditures pegged around $485 billion. Google derives 97% of its revenue from advertising so they are around $28.4bln. Do the math and it comes out to 5.85%.
The majority of this is derived from their search engine marketing practice, which is otherwise known as AdWords. If Google nails display, can get TV seriously off the ground, participate in organic search (take a look at our, kbs+ Ventures, portfolio company Yieldbot), and dominate the tablet/mobile market, then they could realistically get up to 10-20%.
Pretty amazing for a company that was founded in 1998.
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Michael