Google on its Way to Surpass $1 Billion in Revenue from India in FY15
In the great Indian eCommerce race, the real winner is a company which isn’t even on the race track – Google, the U-S based search giant. The California-based company, source said, is on its way to clocking over $1 billion (Rs 6,000 crore) in revenue from India in the year to March 2015, helped along by heavy spending by eCommerce firms.Google crossed Rs 3,000 crore in revenue for the year ending March 2014, up 47% from the year before. Globally, the Google’s revenue in 2013 was $58 billion, according to company filings.
Mr Vasudevan T, a former head of digital marketing at Myntra who is now the CEO of online coaching company Coatom said, Marketing budget have gone through the roof. It’s highly competitive these days and whoever pays the most for a keyword wins the race.
India has been a paradox for companies like Google, Facebook, and Twitter. While their largest user base outside of the United States lives in India, making money in the market has been tough. However with cash rich eCommerce companies like Flipkart and Amazon looking to acquire more customers, online advertising has seen a significant increase.
Mr Nilotpal Chakravarti, who heads media and research at the Internet and Mobile Association of India said, there will be a surge in the digital ad spends by these companies, and we are already seeing this. Ecommerce companies are already one of the top spenders in the digital advertising market of the total digital advertising spend, nearly 18% came from eCommerce, according to IAMAI.
Ruksh Chatterji, who ran the apparel business for jabong until February 2014 said, when I saw our online spends the first time, I almost fell off my chair. Google is a large player in display and display and search engine marketing that are the key pillars of eCommerce advertising.
Google also entangled in tax disputes, while revenue is growing. The company booked at total of Rs 311 crore as “income tax paid under protest” for assessment years 2007-13 as it continues to litigate tax claims made by Indian authorities.