e4m report card - Google in 2024: A year of innovations and accountability

As trite as it has become, “roller coaster” is a befitting metaphor for Google’s 2024. While the company saw record profits and the introduction of AI products and tools, legal troubles and increasingly dire-looking judicial decisions have blunted the high points of the tech behemoth.

From its ad juggernaut to AI breakthroughs and YouTube's evolution to Cloud’s quiet rise, Google demonstrated why it continues to be the cornerstone of the digital economy—even as courtrooms worldwide kept a watchful eye.

Google ad revenues continued to astound, with global figures for Q3 hitting $65.85 billion, a 10% increase from the previous year. In India, gross ad revenues grew 11% year-over-year to ?31,221 crore, driven by Google’s dominance in Search advertising and its programmatic prowess, as detailed in e4m’s financial deep dives.

Digital advertising as a whole in India benefited from Google’s tools, with its platforms enabling brands to scale campaigns efficiently during peak festive months.

Innovation at full throttle

If there was a buzzword for Google in 2024, it was “AI.” Building on its momentum, the company rolled out transformative generative AI features across its platforms. The integration of AI into Google’s services played a critical role in this success.

The company launched its Gemini era , which transformed user interactions across platforms. Features like AI-generated search summaries, known as AI Overviews, were rolled out in over 100 countries, enhancing user satisfaction and driving engagement. This innovative approach allowed users to ask more complex questions and receive tailored responses, significantly improving search usage metrics. Moreover, Google Cloud reported a staggering 35% rise in revenue to $11.4 billion, attributed to the growing demand for AI solutions and infrastructure.

YouTube, another jewel in Google’s crown, reached astronomical heights. YouTube Shorts crossed the trillion-view threshold—a statistic that stunned even seasoned marketers. Meanwhile, programmatic buying gained unprecedented traction, with YouTube Select emerging as the go-to tool for brands targeting premium audiences during India’s festive season. AI also powered creator tools that automated everything from thumbnail generation to video idea brainstorming, ensuring creators stayed glued to the platform.

Quietly but powerfully, Google Cloud rounded out the year as a rising star. Revenues surged 23% to $10 billion in Q3, buoyed by enterprise demand for AI and data solutions. Deals with Reliance Jio and government bodies positioned it as a critical player in India’s digital ecosystem, with e4m’s reporting pointing out how the Vertex AI platform became a linchpin for companies building their own models.

Legal drama: The cost of dominance

But even Google’s innovations couldn’t eclipse its mounting legal troubles. 2024 saw the tech giant embroiled in landmark antitrust battles in the U.S., where courts scrutinized its alleged monopoly in Search. The ad tech trial , highlighted in our coverage, and frequently identified as “the most significant antitrust trial of the 21 ^st Century till date,” brought renewed attention to Google's dominance in the digital advertising ecosystem.

In October 2024, a second major trial commenced regarding allegations of anti-competitive practices linked to its search engine operations. These legal battles pose serious implications for Google's business model and could impact future revenue streams.

Back in India, the Competition Commission of India imposed penalties totalling ?936 crore, questioning Google’s practices in Android’s licensing and in-app payments.

The juxtaposition of Google's financial triumphs against its legal setbacks paints a complex picture of a company at the forefront of technological innovation yet grappling with regulatory scrutiny. While advertising revenues remain vital to Google's profit margins—accounting for over 74% of total revenue—the ongoing antitrust issues could threaten this lucrative segment if they lead to restrictions or changes in business practices.

This dual narrative—unmatched growth versus legal scrutiny—was a recurring theme in our coverage, as can be exemplified by the term Google, and just how much we Googled it.

The balancing act: A year of contrasts

In a year packed with achievements and setbacks, Google remained at the centre of the digital universe. Its strides in AI, Search, YouTube , and Cloud underscored why it’s often called the beating heart of the internet. Yet, its legal challenges serve as a reminder of the responsibilities that come with its influence.

And as 2024 draws to a close, Google's narrative is one of extraordinary growth tempered by significant challenges. The company's commitment to advancing AI technologies positions it well for future innovations; however, it must navigate the complexities of an evolving regulatory landscape while maintaining its leadership in both advertising and technology sectors.