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, an estimated $44 billion 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. This means there’s over $43 billion in ad spend that is not clearly categorized. Furthermore, independent research cited in the presentation indicates that approximately 7% of Google Search spend is not divulged, flowing into these undefined platforms.  

The challenge here 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 ). This non-specific labeling means billions of dollars are allocated to placements that can be described as opaque and largely unaudited. Over the last three years, an estimated $130 billion has potentially been allocated to undefined platforms and websites through Google ad buys. This leaves approximately $44 billion in question when it comes to knowing exactly where those ad dollars are ending up.  

So, 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.  

This opacity can also lead to potential brand safety concerns, including exposure to problem and even porn sites, as revealed in the report. 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. The report 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. Google has also faced numerous legal challenges regarding deceptive advertising and privacy concerns, among other issues.  

It’s also 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. This highlights a critical need for robust brand safety and anti-fraud measures.

This is where CTV Media comes in. 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 ensuring your ads appear in verified, high-quality environments, we help you avoid loss of spend that can result from non-transparent and fraudulent placements. 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.

Given this landscape, what should you, the marketer, be demanding from your media partners, including agencies like us? The Google 10-K Report outlines key areas where complete transparency and verification are crucial:  

• 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 in the right environments. We are committed to working with you to navigate these complexities and ensure your media plan is built on a foundation of clarity and accountability, providing the transparency and brand safety solutions you need to succeed.