The following table shows the revenue of Microsoft from search advertising for the period between 2016 and 2018. Sums are in millions.
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Search advertising is an important source of revenue for Microsoft accounting for around 6% of the brand’s entire revenue in 2018. Compared to 2017, Microsoft’s Search advertising revenue increased $793 million or 13% in 2018. Search advertising revenue, excluding traffic acquisition costs, increased 16%, driven mainly by growth in Bing, due to higher revenue per search and higher search volume. Search advertising revenue of Microsoft for 2018 was $7 Billion, compared to $6.2 Billion the previous year.
“Microsoft is a technology company whose mission is to empower every person and every organization on the planet to achieve more (Annual Report, 2018)”.
It generates revenue by licensing and supporting a large array of software products; offering a wide range of cloud-based and other services to individuals and business enterprises; designing, manufacturing, and selling devices; and through relevant online advertising to a global audience. Most significant among Microsoft’s expenses are those related to employee compensation; designing, manufacturing, marketing, and sales of products and services; datacenter costs that support its cloud-based services; and income taxes.
The most significant product categories which generate the highest part of the company’s revenue are Office products and cloud services, Server products and cloud services, Windows, Gaming, Search advertising, enterprise services, Devices, Linked In and Others. On December 8, 2016, Microsoft completed the acquisition of LinkedIn Corporation for $27.0 billion.
Abhijeet has been blogging on educational topics and business research since 2016. He graduated with a Hons. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. He likes to blog and share his knowledge and research in business management, marketing, literature and other areas with his readers.