How Google Became a $2 Billion Advertiser

Google this: The titan of search last year doubled its global ad and promotion spending to $1.5 billion. Factor in 2011 ad spending for just-acquired Motorola Mobility Holdings, and Google is now a $2.1 billion global advertiser.

Estimated U.S. ad spending for Google and Motorola topped $1 billion in 2011, placing the combined company No. 34 on Ad Age's ranking of the 100 Leading National Advertisers. This marks Google's debut on the list. Google is a big ad seller; advertising accounted for 96% of 2011's $38 billion worldwide revenue. (That percentage will fall with the May 2012 acquisition of $13-billion-revenue Motorola Mobility, which makes mobile devices and other products.) Google is also a big ad buyer. Google's stated worldwide advertising and promotion spending doubled in 2010 and doubled again in 2011. Ad and promo spending as a percentage of revenue reached 4.1% in 2011, up from 2.6% in 2010 and 1.5% in 2009. Advertising and promotion represents a growing portion of Google's sales and marketing expenses.