Google Advertising is The Backbone of Google Inc- Google inc has become one of the biggest technological companies in the world alongside Amazon, Apple, Meta (Facebook), and Microsoft. They have a multi-impact on humans’ life in every aspect. More of its innovation and breakthrough can make the activity of people more efficient and effective. Gmail, Google Drive, Google Cloud, Google Maps, Android, and more application of Google Innovations has simplified the complicated works.
Founded by Larry Page and Sergey Brin on September 4th, 1998, both are Stanford University alumni in the master’s degree program. In the beginning, google is just search searched on the Internet. in the late 1990s and early 2000s, they tried to beat yahoo founded by Jerry Yang and David Filo as the search engine of the Internet. at that time, yahoo is the main competitor of Google. Only just two big players of search engines at that time in the late 1990s, namely Google and Yahoo. At present, after more than 20 years, google still become the world’s most popular search engine beating Yahoo for a while. Although there are some new competitors of the search engine (Yandex, Baidu, and Bing), Google.com still has the largest market share.
Officially, Google has headquartered in Amphitheatre Parkway, Mountain View, California, the U.S. with employees around 139 thousand all over the world. With the diversified products, they have become the huge multinational companies in the World. Financially google’s performance is a remarkably interesting aspect.
The way that they can generate revenues as technology companies are some that we can explore. Based on the Alphabet annual report from 2016 to 2021, Google has some source of revenue from time to time. In its annual report, Google advertising still become the main backbone revenue of Google inc.
Google Advertising and Its Impact on Google Inc Revenue
Based on the percentage of the total revenue of google, google advertising still contributes significantly to boosting the overall revenue of google inc. The contribution of google advertising is still around 80% of all google revenue. If the fluctuation around advertising can influence the total revenue of Google. Financially, from 2016 until 2021, the google advertising revenue achieved 79,383 million US. Dollars in 2016. In 2017, it was around 95,577 million In 2018, it was around 116,461 million in 2018. In 2019, it is around 134,811 million In 2020, it reached 146,924 million US. Dollars, and 209,497 million US. Dollars in 2021. This data was obtained from Alphabet’s annual report. From the description of the data, the revenue from Google advertising increase from time to time in line with the advancement of internet technology.
Specifically, Google also has some diversified advertising products. Google Search & Others, YouTube Ads, and Google Network Members’ properties are some of the types of advertising that google has its own. Three of them have significant effects on google advertising income. Google Search & other is revenues that come from Google search properties (including revenues from traffic generated by search distribution partners who use Google.com as their default search in browsers and toolbars, etc.), and other Google-owned properties like Gmail, Google Maps, and Google Play Store. Meanwhile, YouTube ads are revenues that come from YouTube properties. Furthermore, Google Network is revenues that are generated from Google Network properties involving in Ad Mob, AdSense, and Ad Manager.
According to the annual report of the alphabet from 2016-2021, the revenue of Google search & others still became the largest part. It contributes more than 60% of all google advertising revenue followed by Google Network Members’ properties and YouTube Ads. In the Alphabets annual report in 2021, the revenue of Google Search & Others is around 148,951 million US. Dollars, YouTube ads around 28,845 million, and Google Network Members’ properties achieved 31,701 million US. Dollars. If looking at the picture, the goggle advertising from Google search, YouTube ads, and Google network members always showed enhancement trends despite the Global pandemic in the last 2 years.
Since its founding in 1998, google has gradually become one of the biggest technology companies in the World. Billion dollars of revenue can be generated by Google via diversified products. Their potential revenue can increase in the future. Along with the revolution of internet technology in human life, google can still maximize its revenue and income.
Bibliography of Google Advertising is The Backbone of Google Inc
Alphabet Inc.2022.Alphabet Investor Relations. Accessed via https://abc.xyz/investor/ on February 24th, 2022.
Wikipedia. 2022.Google. Accessed via https://en.wikipedia.org/wiki/Google on February 24th, 2022