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Microsoft Revenue from Search Advertising

The chart above shows the revenue Microsoft generated from search and news advertising from 2020 to 2023 in billions of US dollars.

YearSearch and news advertising revenue (Mn)
2023$12,208
2022$11,591
2021$9,267
2020$8,524

2023: The search and news advertising revenue of Microsoft is included in its more personal computing segment. Search and news advertising is comprised of Bing (including Bing Chat), Microsoft News, Microsoft Edge, and third-party affiliates. In fiscal 2023, Microsoft generated $12,208 million from search and news advertising, which was around 5.3% higher compared to the prior year. In fiscal 2022, Microsoft had generated total $11,591 million from search and news advertising.

2022: The search and news advertising revenue of Microsoft excluding the traffic acquisition costs increased by around 27% in 2022 compared to the prior year. Microsoft generated $11.6 billion from search and news advertising in 2022 compared to $9.3 billion in 2021. Since, the company acquired Xandr from AT&T, it powers one of the largest premium advertising marketplaces.

YearSearch Advertising (Mn)
2021$8,528
2020$7,740
2019$7,628
2018$7,012

 

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.

About Microsoft:-

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.