Navigating the Murky Waters of Google’s Ad Revenue

Google reports its advertising revenue across three main segments: Google Search & Other, YouTube Ads, and Google Network. While YouTube Ads are relatively straightforward, a massive portion of Google’s ad revenue falls under “Google Network” and “Google Search & Other.” The report provided by the VAB titled “Where do ad dollars go when they’re spent with Google” highlights that in 2024, $43.6 million of Google’s ad revenue came from these less-defined platforms . That’s a staggering amount, on par with global print media spend and considerably more than outdoor or radio advertising revenues [1] Furthermore, independent research indicates that 6.7%  of Google Search spend is not divulged, flowing into these undefined platforms [2]  

The challenge is the lack of detailed information about what inventory is included within “Google Network” (which involves AdMob, AdSense, and Google Ad Manager properties) and the “Other” part of “Google Search & Other” (which includes search distribution partners and other Google-owned properties like Gmail, Maps, and Play) [1]. From 2022 to 2024, Google’s non-transparent ad revenue increased by $33.2 billion, totaling an estimated $130 billion dollars over the past three years, Google’s non-specific labeling has allowed billions of companies marketing dollars to be potentially allocated to unspecified media placements.   

With this information, what are the risks when a significant chunk of your ad spend goes into these non-transparent areas? For starters, a lack of transparency can create misaligned incentives. Unlike buying airtime on a specific TV show, where the inventory is finite, the universe of where Google can place ads through its platforms is vast and less defined. This can make it difficult to know the exact Google media your agency is buying. [7]

This opacity can also lead to potential brand safety concerns, including exposure to problem websites including those containing explicit content, as revealed in the VAB report [4]. If you don’t know exactly where your ads are appearing, you can’t fully ensure they are in environments that align with your brand values. It also notes that due to industry pressures, Google has offered only “limited” transparency and has issued refunds to some advertisers after reports of low-quality ad placements [8] Google has also faced numerous legal challenges regarding deceptive advertising and privacy concerns, among other issues [3].

It’s important to consider the broader issue of ad fraud in the digital landscape. Experts estimate that as much as 28% of digital budgets are fraudulent, [5] highlighting a critical need for robust brand safety and anti-fraud measures.

Enter CTV Media: your partner in driving results and elevating your brand impact. We are committed to providing 100% transparency for our clients. With CTV Media, you get no fraud and no problem placements because we prioritize brand safety in every campaign. By verifying your ads appear in high-quality environments, we help you avoid loss of spend from placements that are not transparent or effective. Our brand safety solutions are designed to increase your ROI, giving you peace of mind and better results. Plus, we provide third-party verification without extra costs, giving you an unbiased view of your campaign performance and placement.

In light of the current landscape, what expectations should you, as a marketer, have of your media partners, including agencies such as ours? The Google 10-K Report outlines key areas where complete transparency and verification are crucial [1]:

• Full Lifecycle of Video Ad Units: Understand where your video ads appear from start to finish for each media partner.
• Impression Calculations: Get clarity on how video ad impressions are calculated by each partner.
• Granular Placement Details: Demand exact details on ad placements, including the type of placement and the source of the inventory across all media partners.
• Audience Metric Composition: Understand the breakdown of ad placement types and inventory sources within audience metrics like reach calculations.
• Independent Third-Party Verification: Encourage media partners to work with independent third parties to provide ongoing transparency and verification.

At CTV Media, we believe that demanding this level of transparency isn’t just about knowing where your money is going; it’s about ensuring your ad campaigns are effective, brand-safe, and truly reaching your target audience with the right environments. We are committed to ensuring your media plan is built on a foundation of clarity and accountability, providing the transparency and brand safety solutions you need and deserve to succeed.