This website requires JavaScript.
China

Ad revenues push Google's earnings up by 60% in China

ByteDance spent more than USD 300 million on Google Ads internationally to promote TikTok’s position in Google Search results.

Feb 28, 2019 by A. Alfaro
Ad revenues push Google's earnings up by 60% in China

Although many of Google’s services are blocked in China, some of its business lines are experiencing rapid growth.

Google’s revenue in Greater China (Mainland China, Hong Kong, Macau and Taiwan) grew by more than 60%, reaching more than USD 3 billion. This rapid development has encouraged Google to expand its Google Ads team in China, according to a report by The Information.

ByteDance is among Google’s largest clients in China. The Beijing-based company spent more than USD 300 million on Google Ads internationally to promote TikTok’s position in Google Search results. Alibaba is also a user of Google’s advertising services. The company led by Jack Ma chose Google Ads to popularize its Alipay and cloud computing services.

Apart from these big names, Google has also served smaller Chinese companies. According to sources quoted by The Information, Google doubled its team in charge of small accounts, reaching 200 people. Google has more than 20 advertising offices in China, catering to companies interested in advertising their services in Google searches, Gmail or other Google services.

Google expects more companies to be interested in these advertising services. Both small and big companies in China, facing a slowing economy and a market saturation in Internet services, have resorted to expand internationally in search of new sources of revenue. Their preferred channels to promote products when going overseas are big companies such as Google, Facebook and Amazon.

According to Brian Wieser, an analyst at Pivotal Research Group, Facebook’s advertising revenue from China in 2018 was between USD 5 and 7 billion. In US and Canada, Facebook earned a revenue of USD 26 billion during the same period.

The large investment from Chinese companies in advertising overseas was not in vain. According to a report by Sensor Tower, TikTok recently crossed the one billion mark for worldwide installs on the App Store and Google Play. In January, the short-video app ranked number 3 for new installs among all apps worldwide, across both App Store and Google Play.

A. Alfaro

A. Alfaro is a Beijing-based freelance reporter. He focuses on China's politics, culture and society. He can be reached at varofaro@gmail.com. 

Follow A. Alfaro