In the following article we will explain how does google make money and other curious facts about this technology giant.
If it’s free, how does Google make money?
For many people, Google is simply a seeker to make inquiries. But it’s sooo much more than that.
Companies like Google and Amazon are in a race to control the world, and you can’t do that by just being a seeker.
To answer the question, how does Google make money, I must first put you in context.
At the end of 2015 there was a restructuring and a new company called Alphabet was born. Which is the company that shelters Google and the other projects.
alphabet.
It is one of the most valuable companies worldwide and is among the top 5 technology companies with the highest revenue.
One of the creators of Google, Larry Page, said this to the media, to explain the birth of Alphabet:
“Alphabet is a collection of companies, of which Google is the largest. Fundamentally, we think this allows us more management scale, as we can run things independently that aren’t very related.”
This refers to the fact that many more projects are handled, apart from the search engine.
Alphabet projects. Other sources to know how Google makes money.
When Alphabet was born, 2 branches were created: the projects that are “below” Google and those that are not related to it.
Google projects.
- Google ads.
- Google Cloud.
- Google Maps.
- android.
- Youtube.
- Hardware. – Google home, pixel, etc.
It is very possible that you know Google Home, otherwise, I will explain quickly.
Google Home is made up of a series of products to automate household tasks, and they all work through the google assistant.
Before, Google outsourced the manufacturing of hardware, but recent acquisitions, such as the purchase of HTC (mobile phone manufacturer), show its interest in being in charge of manufacturing.
Projects other than Google.
The projects that I will mention below are not so well known. But they are the ones that demonstrate the reach of Google/Alphabet.
- Google GV: It is one of the investment “arms” of Alphabet. It is responsible for investing in the initial stages of startups, without the need to strategically focus on investing in projects that can be combined with their own projects.
- CapitalG: Like Google GV, it is also an investor group, but for much larger projects. And its focus is clearly the return on investment.
- Waymo: Vehicles driven without drivers.
- Verely: Promotes the use of technology to understand, prevent, detect and control diseases.
- Alphabet Access & Energy: It is in charge of technology projects and initiatives in the best use of energy.
- Sidewalk labs: Their mission is to imagine, design, test and build solutions to improve life in cities.
- Chronicle: Specializes in security solutions for Google Cloud services.
- Project Wing: They develop a delivery service by autonomous drones.
- Project Loon: They bring the internet to remote and/or hard-to-reach places.
- Google X: They are in charge of developing technologies that change the world.
- Deepmind: Their mission is to make further advances with artificial intelligence.
With this in mind, now let’s see how Google makes money.
How Google makes money.
Google/Alphabet has 4 business centers that generate income for them.
Google Home.
As I told you before, Google has devices under its brand Google Home.
This is a very careful area for Alphabet, since large companies such as Amazon and Apple have virtual assistants, such as Alexa and Siri respectively, through which purchases and searches can be made; removing market share from Google.
And in the case of Amazon with its device, Echo, the competition is even bigger; because they compete for the sale of the physical device.
Google Pixel.
Pixel phones are here to stay. Currently the Pixel 3 and Pixel 3XL are on par, both in price and specifications, with the “top” cell phones on the market.
Before looking at other forms of monetization, I would like to ask you a favor. Simply vote from 1 to 5 to see how you’ve found this article so far. Thank you!
Let’s continue…
Google Ads.
Most of the money in the entire company comes from advertising. And the section in charge of this is called Google Ads.
Both YouTube and the search engine, and blogs like this one, are perfect spaces for brands to advertise.
Also read: 38 free and certified Google courses.
Cloud services.
As users, we have almost all Google tools available to us and for free.
However, when managing larger workgroups and want to boost productivity, G Suite appears. A solution integrated by its best-known tools and at good prices; all in the cloud.
Since Google has so many products and projects, I only shared the ones that have reach almost all over the world.
However, it is important that you know that Google monetizes in other ways, but in specific countries and cities.
For example, in some cities in the United States, they provide Internet service, and purchases can be made through Google Express.
It is also important to note that Google is developing and buying companies focused on artificial intelligence; since that is the transversal thread in all its products and what will leverage its growth, and therefore, more forms of monetization.
Find below a graph from the Statista portal where you can see Google’s income from 2003 to 2018.
In the last reported fiscal year, Google’s revenues totaled $136.2 billion.
As mentioned above, most of Google’s revenue comes from advertising, that is, Google Ads. Platform that generated 116 billion dollars.
We hope this has clarified your doubts and explains how Google makes money 🙂
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