how google makes its money. In other words, I explain Google's business model.
. Did you know that Google's parent company, Alphabet, received up to 85% of advertising in 2022, even though it owns several companies in several industries besides Google?
According to Statista.com, this would be approximately $282 billion
. That's a lot of money, but how does Google make all its money from advertising?
Well, let's dive a little deeper. If you have to break it down, Google relies on three key factors. Users, Companies, and Publishers. For users, Google has a simple but powerful value proposition. I can find an answer to everything. If Google wasn't an amazing search engine that millions of people use every day, you wouldn't be using it.
The secret is how they organize the information available on the web and succeed with a simple search. They can scan millions of web pages in less than a second and deliver a search to theoretically anyone, and that's essential for a search phrase entered into a browser. This makes your life easier because you don't have to constantly search through different browsers and websites to find the information you're looking for. Basically, users don't have to pay anything to Google to make money, and that's where I'll come to next.
YouTube is a video-sharing app Thre is the business model of youtube then click here for more details
It doesn't get much harder for businesses. The value proposition is that I get more sales through targeted advertising. Because Google gets most of its revenue from ads, and revenue comes from two types of ads, search and display. Search ads are what you see when you search on Google. These ads are very effective because they allow a business to pay a certain amount to reach the exact audience they want to sell to. Whether a user is looking for financial information, a product comparison or to buy something in a specific area, businesses are willing to pay a lot of money to reach the right customers, and advertisers pay Google every time a visitor clicks on it. advertising In other words, it's a cost-per-click model.
The value of a click can range from a few cents to over $50 for a highly competitive search term such as auto insurance, loans, or other financial services. Now, display ads are a little different. Google has many places where it can serve ads to users. Gmail, YouTube, Google Maps, even Google Adsense partners, and even mobile apps, and the list goes on as Google buys more companies and innovates like Waze. The great thing about this form of advertising is that Google analyzes the context of each individual web page or app and responds to your ad from the customer's perspective. So they marry together.
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They're not just putting your car insurance ad on some random website, they want to make sure that it's relevant to that website and that users are also looking for the product or service you're selling and is valuable to publishers. is the money you can earn for monetizing your content and organic traffic through Google. Website owners have the option to add Adsense ads to their websites and earn money every time someone clicks on those ads. Mobile developers have the option to monetize their apps
In the same way. Not only that, but every time they post more and more content to Google, you can also make more money by getting more organic traffic, and some of those people might click on your ads. Google's revenue is still largely growing rapidly, just as it was more than 10 years ago. The tech giant is still reporting 20% revenue growth, which is crazy considering how big a company is and they already have over $100 billion in revenue. But Google isn't ready to rely on ads alone.
They also received income from other contributions, from other branches that they acquired and developed over the years. 8 billion in 2009 to more than 20.5 billion in 2018. It increased from 3.2% in 2009 to more than 15% in 2018, and this number will continuously increase from 2019 to 20 and 21, etc. Expect the number to continue to grow. According to Sensor Tower, the turnover of the Google app store alone increased by more than 27.3% compared to the previous year. Now, Alphabet is a huge company that includes everything from radio hot air balloons to self-driving cars to Google Cloud.
As long as people continue to use Google to search for information online, it will continue to increase their revenue, which in turn will help other businesses as well as you as a business owner, because the more Google they attract to their business. ecosystem, the more potential you have to attract more people to your business through both paid and organic listings. If you liked this video, make sure you like it. If you have any questions about Google, leave a comment below and I'll get back to you. thank you
