Google is Spending More on Advertising

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

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