If Google is giving millions of people the opportunity to earn thousands of dollars every day, then the question is “How does Google earn itself?”.
Have you ever wondered, how does Google make money? When it comes to Google’s revenue, many people talk about advertising. Yes, 70.9% of Google’s total revenue comes from advertising. But there are many other mediums besides advertising from which Google makes money.
In 2018, Google’s total revenue was 134 billion dollars. Not all income here comes from advertising. Every source of Google revenue will surprise you. So, today we will discuss how a company earns billions of dollars along with advertising.
You must say that Google gives everything for free. It is also important to know that Google is doing business through this free service. When Google started, their motto was that if you work for people for free, people will value you, which will be a valuable asset to you.
How Google makes money is a common question in everyone’s mind. Today we will discuss the answer to this common question.
How Google makes money
Revenue from advertising
Google’s main source of revenue is advertising. 70.7% of total revenue comes from advertising. The way they advertise is not the same. They basically advertise in 3 ways.
Google accepts ads through Adwords. AdWords is the software determining which ads will be presented in the Google webpage and AdSense publishes ads on other websites. The funny thing is, if someone clicks on your ad, they will charge you. If no one clicks on your ad, they will not charge you. This method is known as CPC or Cost Per Click.
You see ads on most websites. Most of these ads are taken from Google. They show this ad and take money from the advertisers. In addition, this method is also used in Google search. About 4,090,000 searches are done on Google every month by typing ‘cheap flights’ in the USA. Now if you want your website to come first if you do this keyword search, then you have to advertise on Google. The estimated CPC for this keyword is 2.44 USD. In other words, Google will earn 2.44 USD per click on this ads.
Google AdSense shows ads on YouTube and various websites. However, through this, Google alone does not take full money and some parts are with the publishers. Publishers are those whose ads are displayed on their websites or YouTube channels.
When someone clicks on an ad on a Google AdSense approved site; Google then pays the site owner for that click. Here, Google retains some of the money it receives from advertisers.
Google made 15 billion USD in 2015 from Google Adsense. That year Google accounted for 23 percent of total advertising revenue.
Displays ads in Google Apps via AdMob. We see ads in many Play Store apps. This ad is shown by Google. Google earns money from here.
Android and Play Store
Google can’t make money directly from Android. But it has increased their income path. They can give their own apps by default through Android. And Google’s default app earns money through advertising and paid subscriptions.
In addition, the Play Store on Android is one of their sources of income. Most of the books, music, games and apps in the Play Store have to be purchased with money. And Google makes good money from this money.
About 7 years ago, Pixel started its journey with the Google device. Google also launches products like Chromebook, Chromecast, Home.
Gmail, Calendar, Drive, Docs, Sheets, Slides are all included in G Suite. Google earns money from all these apps. Although all these apps can be used for free, you have to pay for additional benefits.
To use the basic version of Google Drive you have to pay 6 USD and 25 USD for unlimited storage. In addition, to use Google’s other cloud platforms, you have to buy a subscription with money.
Google also earns revenue through its Google Maps Platform from companies and industries that need navigation, tracking, and mapping. Google Maps API is geared towards businesses that benefit from having a tailored version of the Maps in their online or mobile applications.
For example, ride-sharing companies could connect their app–or software application–on their website to Google maps. Drivers and customers can track each other’s movements to help communicate where and when to meet as well as help reduce wait times.
Google Translate is a lot like Google Maps. When you use it in person, you can use it for free. But, if you want to use it for business purposes, you have to pay. You have to pay to use their API. You have to pay 20 USD for 1,000,000 words. You have to pay Google on a monthly basis. Google makes a lot of money from here.
From the above discussion you must know how Google earns. Google has many sources of revenue. But at the end of the day, their highest income comes from advertising. This ad is not only a source of income for Google, but also a source of income for many websites and YouTubers.If you like any of the information in the article, share it and let others know.