Meta India revenue: Meta India records gross advertising revenue of Rs 16,189 crore in fiscal year 2021-22
The company’s net profit increased by 132% year-on-year to Rs 297,000,000 during the same period.
Facebook India Online Services ended up paying an equalization levy of Rs 907 crore to the government on gross advertising revenue in the financial year 2021-22, according to documents filed by the ROC.
Facebook India buys advertising space from Meta Platforms Inc USA.
When selling to its Indian customers, Meta India applies a markup to the cost of goods sold.
For Meta India, Rs 15,120 crore was the cost of advertising inventory.
Meta India’s total revenue in the financial year 2021-22 was Rs 2,324 crore and this includes net revenue from advertiser resellers (Rs 889 crore), IT-ITES services (Rs 1,420 crore) and other income (Rs 15 crore), as per deposits.
The net profit of the business is derived from this net income.
In the financial year 2020-2021, the company recorded gross advertising revenue of Rs 9326 crore and recorded net profit of Rs 128 crore on revenue of Rs 1481 crore. In the 2019-20 financial year, the technology major recorded a net profit of Rs 136 crore on revenue of Rs 1,216 crore.
Media buyers familiar with Meta and Google issues said the gap between the two was narrowing. “Google reported gross advertising revenue of around Rs 13,887 crore last year, and Meta reported gross advertising revenue of Rs 16,189 crore for the fiscal year 2021-22. The gap between the two appears to be narrowing If you look at Meta’s growth, it’s been greater than Google’s growth every year,” said a media buyer who works with both platforms.
A media buyer said Reels drove growth on Instagram, Videos drove growth overall, and growth for Meta platforms in general was higher. “The pandemic has spurred digitalization and this growth has occurred despite Delta’s peak surge when the economy came to a near standstill for a few months. I think a lot of the growth has been driven by small businesses and new businesses. From an industry perspective, consumer tech, CPG, financials, and the whole direct-to-consumer category has done very well for Meta properties,” the person said.
According to industry insiders, Google and Facebook continue to grab more than 70% of the digital advertising pie in India, and have done so for the past few years, indicating a growing duopoly.
Globally, Meta Platforms Inc reported revenue of $28.82 billion in the second quarter of 2022, up from $29.07 billion a year ago. It reported profit of $6.69 billion, down 36% from a year earlier.
In major markets, the tech giant has faced fierce competition from TikTok and Amazon for ads and has been hit hard by Apple’s privacy changes to its mobile operating system. iOS which allowed users to opt out of digital tracking but this has not been the case in India as a country is primarily an Android market.
The CEO of a digital agency said India’s results should be seen in the country’s economic context.
“I think we’re in the middle of this massive digitization and the economy is doing well. Platform growth has continued so supply hasn’t been an issue,” the person added.
According to GroupM’s “This Year, Next Year” (TYNY) 2022 futures report, ad spend is expected to reach Rs 107,987 crore in 2022 in India, growing by 22% for calendar year 2022.
In an interview with ET last month, Ajit Mohan, managing director of Meta India, said there were three areas where the company had expended disproportionate energy and investment over the past two years: video (specifically Reels), building a small business proposition and partnering with Jio.
He said the pandemic has accelerated digital transformation and that Meta is benefiting from the transition from offline to online and the transition continues to be well underway.
Mohan had also said that while Facebook and Instagram were growing “very quickly” in India, the momentum was particularly driven by Reels on Instagram, which is also on Facebook now.