Alphabet Google Ad Revenue Up Again, Hitting $72.5 Billion

$72.46B

In the fourth quarter of 2024, Google's advertising revenue increased by 10.6% year-over-year to $72.46 billion, with YouTube's ad revenue rising 13.8% to $10.47 billion. However, this growth represents a deceleration compared to previous periods, partly due to strong advertising performance in Q4 2023 driven by Asia-Pacific retailers. Looking ahead, Google is focusing on integrating artificial intelligence into its services, including AI Overviews in search and enhancements to Google Shopping, to drive future growth.

3%

Deloitte’s 2025 retail outlook predicts a positive year, with consumer spending expected to grow over 3%, reaching $5.2 trillion. E-commerce sales are set to rise by 8.4%, while in-store sales will see a 2.4% increase. AI-driven personalization and seamless shopping experiences are expected to drive growth. Despite economic uncertainties, 71% of consumers feel financially stable, fueling optimism in the retail sector.

$187B

Amazon is expected to surpass Walmart in quarterly revenue for the first time, reporting $187 billion, while Walmart is projected at $180 billion. Amazon’s market cap has reached $2.5 trillion, driven by AWS ($90 billion in 2023) and a 19% rise in online ads. Meanwhile, Walmart's U.S. ad revenue grew 30%, and it still dominates grocery sales with a 30% market share against Amazon’s 3%. Experts believe another company may eventually overtake Amazon in the future.

70%

The rise of retail media networks (RMN) and connected TV (CTV) is transforming digital marketing, with CTV ad spending set to surpass traditional TV by 2028. Amazon’s Brand+ AI tool boosted sales by 10%+ and website traffic by 70% for beta testers. As over 200 RMNs compete, partnerships—like NBCUniversal with Instacart and Walmart—are helping advertisers improve targeting and measurement.

15000

In 2025, the U.S. retail sector is projected to experience approximately 15,000 store closures, nearly doubling the 7,325 closures recorded in 2024. Major retailers such as Macy's, Big Lots, Walgreens, and Party City are among those planning significant shutdowns. This surge in closures, the highest since 2020, is attributed to economic pressures, increased competition from emerging retail models, and lingering effects of bankruptcies and restructuring from 2024.

3.1%

According to Deloitte's 2025 retail outlook, consumer spending is projected to rise by 3.1% this year. However, 60% of retail executives anticipate that customers will prioritize price over value in their purchasing decisions. In response, retailers are focusing on optimizing costs and reinvesting savings into productivity enhancements, new capabilities, and exploring new revenue streams. This strategic shift aims to balance necessary investments in areas such as AI and digitalization with maintaining competitive margins.

4%

Holiday retail sales in November and December 2024 increased by 4% to $994.1 billion, surpassing expectations. Online sales saw an 8.6% rise during this period. Retailers like Target and Richemont reported better-than-expected sales, while Macy's and Signet Jewelers faced challenges. Analysts predict a 2.5% increase in consumer spending for 2025, supported by moderated inflation and a stable job market. However, potential risks such as tariffs and stock market corrections could impact this growth.