Google is Spending More on Advertising
As Google seeks to expand its operations beyond search, it is spending more on traditional advertising to promote its Google+ social network and Chrome web broswer. This move comes at the back of years of touting the superiority of online advertising.
Google's ad-spending as a percentage of revenue is now almost on par with rival technology companies such as Apple, Microsoft and Yahoo according to new data.
Last year, Google spent about $213 million to advertise its own products in the U.S., nearly quadrupling the $56 million spent in 2010, according to estimates from Kantar Media, a unit of WPP PLC. The firm didn't have data for spending outside the U.S.
While online ads still account for the bulk of spending, Google has increased television spending from a mere $6 million last year to a whopping $70 million. Spending on newspaper, magazine and radio advertising also saw a significant increase from $4 million to slightly over $20 million. Reportedly, $12 million alone was spent on a TV ad featuring The Muppets using Google's video chat service.
Source: The Wall Street Journal