Do You Know Why 96% Of Google’s Revenue Is From Its Two Primary Products?
Google is best known for its web search products. It has revolutionized the way we research and find answers. But the search itself is only the foundation upon which an empire of gold is built. Search-based ads and banner ads on your website affect almost every industry. It even spawned the jobs of search engines and display marketers. Their responsibilities include understanding Google AdWords and Adsense and understanding the strategies behind bidding and maintaining ad campaigns.
Google’s Revenue
The industries that used the most Google ads in 2011 were finance and insurance, with $4 billion going to Google. State Farm topped the list with a whopping $43.7 million in google revenue. The industry’s most common highest CPC search term is “self-employed health insurance,” with advertisers charging about $43 per click on an ad.
The retail and grocery industry ranks second among the industries with the most google revenue, and Amazon tops the list with $55.2 million. Even though Amazon’s recent Kindle Fire may seem like too many, the most frequently searched keyword in retail is actually “Zumba Dance DVD.” Learn something from common keywords, the economy is down, so people are self-employed and want to dance and exercise at home.
Travel and tourism came in third, google revenue $2.4 billion on Google Ads. Work and education came in fourth, and home and garden came in fifth.
Google Ads and Search Ads
Most of Google’s $162 billion in 2019 google revenue came from its own advertising service, Google Ads.
When you use Google for browsing from financial information to local weather, you’ll see a list of search results generated by Google’s algorithms. The algorithm tries to provide the most relevant results for the query. In addition to these results, you’ll also find pages of relevant suggestions from Google Ads advertisers. For content-related advertisements, anyone can hire a book advertising.
Advertisers must outdo each other to get the top spot in Google Ads. Higher bids move to the top of the list, but lower bids may not appear.
Advertisers pay Google every time a visitor clicks on an ad. For highly competitive search terms, such as insurance, loans, and other financial services, click values range from a few cents to over $50.
AdSense Network
Google’s AdSense program not only allows you to place search ads on your site but also allows you to integrate Google’s display ads into your pages on non-Google sites. AdSense ads work like Google’s on-site ads but appear on Google-approved sites anywhere on the Internet.
When a visitor clicks a display ad on a member site, a portion of the revenue is paid to the site owner, and Google keeps a portion of the fee. Due to the wide range of companies that advertise on the web, the entire company relies on AdSense as its main source of revenue.
Other income
The rest of google revenue in 2019 came from various non-advertising items. These initiatives include various projects from online and offline businesses.
The “Other revenue” list includes revenue from related online, media, and cloud computing businesses, such as the Play Store, Chromecast, Chromebooks, Android, Google Apps, and Google Cloud Platform.
Past offline projects include investments in Google’s famous self-driving cars, Google Glass, and a solar farm in the Mojave Desert. Analysts have criticized Google’s investments in these projects. That’s because increased costs in non-core businesses reduce the company’s overall profit margins.
In conclusion
Google grew 18% year over year in 2019 and 20% in constant currency, according to information released by Alphabet and Google CFO Ruth Porat.
Other business units contribute billions of dollars to google revenue each year, but the bulk of Google’s revenue comes from online advertising. Despite the company’s investments in other businesses, the tech giant’s presence in online advertising doesn’t appear to be changing anytime soon, nor does its strong revenue growth.
