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Our business is built on a revenue share model that succeeds only when our partners succeed
- Says Philipp Schindler, SVP and CBO, Google
But how does the revenue model succeed if Google gives away services like google meet, google meet, Gmail, etc. for free?
The total Google services revenue consists of google search and other advertiser revenues. The Google search from the browser has been exceptionally profitable as it contributes to the search advertisements. A large portion of approximately 80% of the revenue comes from advertising driven by Ad Manager and Ad Mob. Webmasters program the kind and type of Advertisements Google can provide. On a click, the Ad revenue is distributed among the advertiser site and Google. A whooping 162-billion-dollar revenue in 2019 came from Google Ads, its advertising service. Google’s AdSense program on Gmail charges display advertisers per click and 1000 ad impressions. The key players of Google are mainly divided into users, publishers, and businesses. A click is maybe worth anywhere around a few cents to over $50 depending on the search items. This now leads to Google AdWords where advertisers pay to have their results displayed to the niche audience on appropriate sites. The brand advertising and the network advertising with YouTube have also been driven up by 30 % by Ad Mob and Ad Manager. Retail has been by far the biggest contributor in the Ads business. Media and entertainment, Finance, and Travel aggravated these profits by pulling web traffic.
The search patterns from Gmail and YouTube are recorded along with the Google search and customized results as a result of Google AdWords are presented for you.
Profits were also driven by Google’s cloud computing services which include Play Store, Chromecast, Chromebooks, Android, Google Apps, and the Google cloud platform. The Google Cloud Platform has had a revenue amounting to 13 billion U. S Dollars which makes it up to 7.2 percent of Google’s total revenue There has been a significant growth in both infrastructure and platform services making it a hit. The Google cloud segment including Google Cloud Platform and Google Workspace (the G Suite) was meaningfully above Cloud. The Google workspaces revenues were driven by the growth in seats and mean revenue per seat. There also have been acquisitions like Kaggle, Dialog flow, etc.
Google Pay makes profits through commissions it gets from the company’s transactions and operators. Its robust level increment in user engagement has been a game-changer. Not only this but also the previous offline projects such as Google’s subsistence development arm projects like self-driving cars, Google Glass, and the solar power plant have been intended to contribute their share.
YouTube has contributed to both advertising and non-advertising platforms. The advertisers who shifted from TV to YouTube helped to gain more profits letting lower their cost per reach. This improved both reach and efficiency and let them make the most of the investments in the brand.
Apart from these, Hardware benefitting from Fitbit revenues and Google Play Store have shown strong growth in retail. Google Play Store’s Play pass and the applications with add free passes and in-app purchases on the selected products lapped the user engagement.
When it comes to the now free google meet service, it is a part of the G Suite which is expected to become a premium service in near future.
A little revenue was generated from the foreign exchange risk management as well. The ever-increasing rate of consumer online activity, broad-based strength in advertiser spend, and the benefit of Google’s teams have been the reason for their boom.
All in all, we observe that google has been generously funded with cash from search advertisements, display advertisements, search engines, Google services G suit cloud computing, and other innovative projects which have been successful enough to make profits and fund their other free services as Google meet, Google Pay, G Mail, the search engine chrome, etc. we understand that Google is not relying just on the advertisements for revenue The present free services have attracted a massive amount of web traffic which helps Google promote their other paid services. Along with the advertisement for Google products, they also advertise other advertisers with the help of AdWords. So far it has been working out quite well with an increasing chunk of people finding information online and soon we can expect Google to come up with rather more innovative projects and the then anticipated profits
--- Kavya