Figures released by the search giant reveal that the UK generated $969m (£593m) of revenue in the first quarter of 2011. On present growth rates of around 25% per quarter – which it has sustained since September 2009 – Google will rack up between $5.2bn (£3.2bn) and $5.6bn (£3.4bn) in the UK.
However to make the most accurate comparison of Google's and ITV's advertising revenues, it is necessary subtract the search engine's "traffic acquisition costs" (TAC), which Google pays to partners such as AOL or MySpace to acquire business. Those have run at 25% of revenue for the past five quarters.
On that basis, Google's total UK advertising income in the year will be between £2.4bn and £2.55bn, depending on whether one assumes 20% or 25% growth this year – well beyond the £1.7bn ITV will manage if it achieves a 15% rebound during 2011.
"The significance is that everybody who's advertising now wants to see a return for their spending, and on the internet you can do that exactly," said Lorna Tilbian, head of media analysis at Numis Securities. "Whereas for television, it's still the case that, in the famous quote, half your money is wasted, but you don't know which half."[...] guardian.co.uk
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