How Does Google Make Money?
As a leading tech company, Google’s role inecommerceis immense. Whether you’re a business owner optimizing your online store to cater to theworld’s largest search engineor a shopperdiscovering new products, Google is bound to feature in your journey.
But how does Google make money?
WithGoogle’s ad revenuesin the billions and rising year after year, it’s clear that ads are one of the company’s biggest revenue sources. But that’s not the only way it makes money. Here’s a look at Google’s top revenue streams.
Google revenue breakdown: top five Google revenue sources
According torecent data, Google’s top revenue source in 2022 was search ads. Of the $279.81 billion in revenue the company brought in, a whopping $162.45 billion came from search ads. This includes ads on itssearch engine results pageand other products like Gmail, Google Maps, and Google Play.
This Google revenue breakdown shows that search ads made up the majority—or 58.1%—of its total revenue worldwide last year. This is no surprise, as search ads have been Google’s largest source of income for years.
Google’s second-biggest income source is its Google Network ads, which generated $32.78 billion in revenue, or 11.7% of the total. This includes ads that appear on Google’s partner sites. This is followed by YouTube ads, which were Google’s third-largest income source. At $29.24 billion, revenue from YouTube ads made up 10.5% of Google’s total revenue.
Fourth and fifth on the list of Google’s top revenue sources are apps, hardware, and content, as well as Google Cloud, respectively. Revenue from the company’s apps, hardware, and content hit $29.06 billion, contributing to 10.4% of the total. Google Cloud was responsible for $26.28 billion, around 9.4% of the company’s 2022 revenues.
Google revenue breakdown (Q1 2023)
Thelatest earnings reportfrom Alphabet, Google’s parent company, shows that search ads continue to drive Google’s revenue.
2023年一季度,谷歌的收入总计698亿美元, of which $40.4 billion (or 57.8%) was from search ads. Revenue from Google Network ads hit $7.5 billion (10.7%), and YouTube ad revenues registered at $6.7 billion (9.6%). In other words, at $54.5 billion, the total ad revenue from Google constituted 78.2% of the company’s total revenue in the quarter.