The total advertising figure is irrelevant, most of their revenue comes from Search advertising where users are proactively in the context of seeking specific i

The total advertising figure is irrelevant, most of their revenue comes from Search advertising where users are proactively in the context of seeking specific information at the point where relevant ads are most lucrative. The only revenue being sacrificed is being able to deliver less contextual ads in gmail, they still know a lot about you so they'll still be targeted ads so their sacrificing marginal contextual targeting vs peace of mind in a large corporate market which are hesitant to use Google's G-Suite products because of their concerns that their emails are being scanned. Google is smart, if they're doing this it's because they've calculated the increase potential in G-Suite revenue is more than the marginal loss in less contextually specific ads in gmail. Other factors that play a role in the decision is better branding in that Google is no longer spying in your private conversations to sell you targeted ads and the mitigation of potential lawsuits.