The above chart shows the sales and marketing expenses of Alphabet, the parent company of Google from 2013 to 2022. As Alphabet’s total revenue has continued to increase over year, so have its expenses in various areas including R&D, marketing and Traffic acquisition. The company spent 9% of its total net revenue in both 2021 and 2022 on sales and marketing. Its expenses on marketing and sales were $26.567 billion in 2022 compared to $22.912 billion in 2021.
Sales and Marketing expenses of Alphabet (parent company of Google) 2013 -2022
Amounts in millions.
|Year||Sales and marketing expenses (Millions)|
2021: The sales and markting expenses of Alpbhabet Inc (the parent company of Google) increased to $22.9 billion in 2020 compared to $17.95 billion in 2019. The company spent 8.9% of its net revenues on sales and marketing. Alphabet experienced record revenue growth in 2021, as its revenues surged past $250 billion for the first time in its history driven by growth in advertising and cloud revenues.
2020: The sales and marketing expenses of Alphabet remained $17.95 billion in 2020 compared to $18.5 billion in 2019.
In 2019, the sales and markeitng expenses of Alphabet Inc (Google) grew to $18.5 billion from $16.3 billion in 2018.
Alphabet’s sales and marketing expenses grew by $3,440 millions from 2017 to 2018 mainly due to increase in compensation and facilities related costs for employees in sales and marketing as well as sales support and certain customer service functions. There was a 12% increase in headcount resulting in a growth of $1,418 millions in sales and marketing expenses. Advertising and promotional expenses also increased adding $1,233 million to the sales and marketing expenses of Alphabet in 2018. Overall, sales and marketing expenses increased by 11.9% in 2018 compared to the previous year.
The sales and marketing expenses of Alphabet mainly include the advertising and promotion expenses related to its products and services. Its also includes the compensation of sales and marketing personnel and of those employed in some other related functions. From 2016 to 2017, there was an increase of 2.4 Billion dollars in the sales and marketing expenses of Alphabet. It was mainly because of an increase in advertising and promotional expenses of 1,266 Million dollars. The advertising and promotions expenses of Google’s hardware products , and cloud offerings have increased. Compensation expenses of the sales and marketing personnel of the brand have also increased.
In the first quarter of 2018, Alphabet spent 3,604 Million dollars on sales and marketing. During the same period last year, its expenditure on sales and marketing was 2,644 Million dollars.
In the second quarter of 2018, it has spent 3,780 Million dollars on sales and marketing versus $2,897 millions during the same period last year.
Third quarter 2018- It spent $3,849 millions versus 3,042 million dollars during the same period in 2017.
In the first three quarters of 2018, it had already spent 11,233 millions versus 8,583 Million dollars in the 1st three quarters of 2017.