In the great Indian ecommerce race, the real winner is a company which isn’t even on the race track — Google, the US-based search giant. The California-based company, sources said, is on its way to clocking over $1 billion (Rs 6,000 crore) in revenue from India in the year to March 2015, helped along by heavy spending by ecommerce firms.
According to company filings, Google crossed Rs 3,000 crore in revenue for the year ending March 2014, up 47% from the year before. Globally, the Google’s revenue in 2013 was $58 billion.
“Marketing budgets have gone through the roof. It’s highly competitive these days and whoever pays the most for a keyword wins the race,” said Vasudevan T, a former head of digital marketing at Myntra who is now the CEO of online coaching company Coatom.
For companies like Google, Facebook and Twitter, India has been a paradox. While their largest user base outside of the United States lives in India, making money in the market has been tough. However, with cashrich ecommerce companies like Flipkart and Amazon looking to acquire more customers, online advertising has seen a significant increase.
“There will be a surge in the digital ad spends by these companies, and we are already seeing this,” said Nilotpal Chakravarti, who heads media .