Google: $200M in advertising and promotion

10/20/06

In its latest financials, Google reveals it only spent $50M on advertising and promotion in the last quarter. That’s 1.8% of sales, as Paul Kedrosky points out, and compares with Microsoft’s 2.7%, and the 20% OTC drug companies spend.

Now, Google doesn’t actually produce any physical products. It doesn’t have to ship out samples or run product launch junkets. It receives millions of impressions a day in free media.

$14M of that total was “related to certain distribution deals.” Fine, but let’s assume Google’s spending $36M on advertising and promotion. Considering they do little actual advertising, what is the company spending $144M a year on?

Do lobbying fees fall under “advertising and promotion”?

Or is that just the cost to customize the Google logo for American and international days of significance?

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