Unexpected Move: Google Cloud's Ad on Vegas Sphere at AWS Re:Invent

Google Cloud Ad on Vegas Sphere at AWS Re:Invent

Google Cloud surprised everyone by running an ad on Vegas Sphere during the AWS Re:Invent event in Las Vegas from November 27 to December 1, 2023. This move is quite bold and tells us two things: Google Cloud is really serious about the cloud business, and they need it to succeed.

Advertising Costs

• Advertising on the Sphere costs $450,000 per day or $650,000 per week.
• In 2022, Alphabet, Google's parent company, allocated 4.37 billion U.S. dollars for advertising in the United States.

Possible Reasons for the Ad

Why would Google Cloud spend so much on an ad during AWS Re:Invent? There are two possibilities:

1. Actively looking for new customers.
2. Their business is thriving.

However, recent earnings reports suggest the former, as Google's growth in the cloud market lags behind its major competitors.

Cloud Market Growth

• In the last quarter, AWS experienced a 12% growth, reaching $21.3 billion.
• Google reported a 22% revenue growth, totaling $8.41 billion.
• Microsoft Azure outpaced both with a 29% increase in revenue.

Clever Advertising Strategy

This isn't the first time Google has used a current event for advertising. Recently, after OpenAI's chief scientist fired someone on Google Meet, Google cleverly used the opportunity to create an ad for Google Meet on the Play Store, saying, "Meet on any device and perfect for poorly planned board coups."