Google has raked in revenues of over a billion dollars from India for the first time this year. Sales crossed Rs 7,200 crore (roughly $1.1 billion) in 2017, recording a 22 percent increase over 2016′s Rs 5,904 crore. That is only half the growth the search giant recorded between 2015 and 2016, according to reports. The majority of its revenues is driven by search ads, which is an undeniable component of digital advertising in India.
While digital ad sales is a prominent contributor to Google India’s numbers, they constitute only one percent of its parent’s revenues globally. In India, Google search ads are so critical that brand marketers reportedly spend two-thirds of their digital budgets on them. While Google has revealed its sales numbers in a filing with the Registrar of Companies (RoC), it hasn’t divulged profit figures. Its Silicon Valley peer Facebook though is more upfront about profit numbers. The social networking giant is said to have grown its bottomline by 31 percent in India this year. 
But more than social networking where Facebook is scoring above all, notching up 241 million users in India, it is online advertising where it has emerged as Google’s prime competitor. Riding on an upsurge in the ad business, Facebook recorded a 93 percent growth in India turnover to Rs 341.8 crore in 2017. ”Google, along with Facebook, is the most prominent force and critical to the advertising industry. They define the digital advertising industry,” a prominent advertising professional was quoted as saying. Both Google and Facebook have reaped the rewards of increased mobile ad spending in India. That is growing at 85 percent, and is estimated to cross $1.21 billion this year. With India becoming the second-biggest smartphone user base in the world, advertisers are having to reach where a majority of their audience is. While TV continues to be mass, its costs are prohibitive. And mobile’s cost-to-reach ratio is way more attractive, thus compelling marketers to park their ad dollars with Google and Facebook. India mirrors a global trend in this regard. Internet research firm eMarketer states that 67 percent of Google’s global digital ad revenue will come from mobile in 2017.