Founded in the year 1998, Google is the gigantic technology corporation from the USA. Apart from its core identity as a search engine, it is also a specialist in Internet Related Products and Services.
The business model of Google – the biggest Search Engine – revolves around the search engine, online advertising, cloud computing, hardware, and software. In this post, we will be covering the intrigue details of Google Business Model and will try to understand how Google generates its revenues. So, let us unravel the mystery here and now.
Introduction to the Business Model of Google
For those who are the regular users of the internet, Google is a site that is pretty common for sure. There is simply not a single speck of doubt about the fact that Google is the most important and popular sites all over the world.
The company has managed to secure the top position in the list of the best sites in the world.
Not just that it is one of the most popular search engines as well.
So, there is no doubt that a company like Google would have a very great business model. The business model of a company like Google would really be the inspiration and useful for the other companies who want to create a business strategy that Google did.
Different industries covered by the business model of Google are
- Computer software
- Cloud computing
- Artificial intelligence
- Computer hardware
Chain of products, services, acquisitions, and partnerships offered by Google are
- Google Search Engine
- Google Docs, Google Sheets, and Google Slides
- Gmail/Inbox, Google Calendar, Google Drive
- Google All, Duo and Hangouts for instant messaging
- Google Translate for language translation
- Google Maps, Waze, Google Earth, Street View for mapping and navigation
- YouTube for video sharing and Google Keep for note-taking
- Google Photos, Android mobile OS, Google Chrome Web Browser, Chrome OS
- Nexus Devices, Google Pixel Smartphone, Google Smart Home Speaker, Google WiFi mesh wireless router
- Google Daydream virtual reality headset
- Google Fiber, Google Fi, and Google Station
To understand the Google business model, you need to go through different segments of the Google business model and dive deep into the products of those segments
Different Segments and associated Products of Google Business Model
Channelization of Google business is associated with different segments. Now we will be going through those segments on by one:
#1. Search Engine Segment
This is the most important segment of Google business that also plays the most significant role in helping Google generate good revenues. Different product of this segment is-
- Google Search
- Google Books
- Google Photos
- Special Searches
#2. Advertising Segment
Advertising is very significant in helping the business model of Google generate good revenues. It lets businesses, marketers, and advertisers run ads on Google for which they pay Google a fixed amount. Some of the products that come in this segment are-
- Google AdWords
- Google Analytics
- Google AdSense
- Google Ad Mob
#3. Enterprise Product Segment
Key products of this segment are-
- Google Search Appliance
- Google Apps
#4. Productivity Tools Segment
Google also offers some of the most useful productivity tools to its consumers. Let us have a look upon those as well-
- Google Drive
- Google Doc
- Google Code
- Google Calendar
#5. Additional Products
- Google News
- Google Phones and Android OS
- Google Fiber
- Google Goggles
- Google Chrome
Now, as you are well aware of the things that the business model of Google channelizes for serving its customer base, the time has come to understand how Google makes money-
How does Google Make Money? | Business Model of Google
The search queries that are made on Google are increasing every single day, and there are more than 1 trillion of these searches that are done on the platform of Google every single day.
So, there is no doubt that it is one of the most amazing sites in the world that is used by more than 90% of the people who are using the internet in the best way.
Hence, we are going to have a little discussion about it for sure.
Let us see how Google Search helps Google in making money through the image below –
Users send a search request to Google, and then Google provides relevant results.
Now, marketers and businesses use this system to run their ads using AdWords by paying to Google, so their products and services can top the relevant search results as the answer/solution to the query of the user.
It is a fact that Google gets most of the money from the advertisements in the best way, so first; we will understand that-
How Can Advertisements Help Google in Making Money? |Business Model of Google
When it comes to the advertisements that are on Google for most of the time, there is just one thing to say for sure.
These help a lot when it comes to the generation of the revenue in the best way. However, for the advertisements, there are three different components which are a great help for sure.
Well, these are AdWords, AdMob, and AdSense.
There is no doubt that without these three components, Google will not be able to advertise in the best way. Now there are different tasks for every single one of the components that are mentioned here.
For example, Google AdWords is something that can be considered as a targeted platform for advertisers out there who want to develop as well as launch certain campaigns on behalf of Google Engine in the best way.
The advertisements that will be allowed to display on the internet are selected with the help of Google AdWords. So, it can be said that it is one of the most important and amazing components for Google Advertisements in the best way.
Now when we come to AdSense, there is just one thing to say. This component is basically publisher oriented, and it is a platform which can be used by the publishers from all over the world who want to make some money by posting the advertisements that they have on the websites of theirs.
So, there is simply not a single speck of doubt about the fact that they will be able to be a part of the important Google Display Network in the best way. Now, who wouldn’t want to be a part of it, right?
Now we come to the last one of the components, and it is known as AdMob. Well, this is one of the components which has the same properties as AdSense. However, there is some difference between these two options, and it is this that AdMob can be used for mobile platforms.
We are here to tell you that with the help of these two amazing components, there is simply no doubt that Google will be able to create amazing advertisements which are going to be the best help that it needs to generate the money.
Google Shopping Ads: What Do You Need To Know About It
This is yet another component of the business model of Google. There are so many different types of ads that Google has in the first place. So, we can say this without any form of doubt that people need to know about some of these ads so that they can have an idea about the fact that Google can make money with the help of these amazing ads for sure.
The search engine is something that uses the amazing Google Shopping ads in the best way. These are the ads that are pretty useful when it comes to picking out the amazing target customers and shoppers who will be impressed by the ad format that the Google Shopping ads have.
So, we can say this without a doubt that it is going to be the best thing for the Google Company for the generation of some revenue in the best way.
We are here to tell you that these shopping ads on Google are one of the major contributors to the amazing revenue that the company has got in the first place. Of course, there are some other options as well, but this is one of the primary factors for sure.
Revenue Generated from Google Maps
This is certainly one of the most important factors that contribute in a large way to the revenue that is generated by Google for sure. There are Google Maps which are used by the users who want to have some directions from one place to another.
There is a pretty large user base for the amazing Google maps, and it gets the amazing revenue from the API that has which is particularly used by the companies such as Trivago, Uber, Pokemon Go and so much more.
The product pricing that is paid by the users will be directed towards the company in the best way. Hence, it is certainly a fact that Google Maps is one of the biggest generators of revenue for Google Company. This is something that people always need to keep in mind for sure.
Revenue Generated From Google Translate | Business Model of Google
We talked a bit about the Google Maps, and just like it, there is another one of the amazing application which is known as Google Translate, and it is also another one of the free applications that users can use to translate pretty much anything.
Despite the application being free of cost, there is no doubt that it is an application which can make a lot of money for the Google Company.
The reason behind this is that the businesses and the amazing individuals are constantly using the Google Translate application and the API integration that it has can help it make money in the best way.
So, that is one of the most important things that people need to keep in mind about Google Translate for sure.
Revenue Generated from G Suite
Here is another option for the Google Company from which it can make a lot of money for sure. G Suite is something which can be considered as the amazing brand of cloud productivity in the best way.
There are collective and collaboration tools provided in the G Suite such as Docs, Hangouts, Gmail, Calendar, Drive, Sheets, Sites, and so much more in the most amazing way for sure. The brand would operate on a business model which is freemium for sure.
The user will be able to get a cloud space with is limited, and the features that are provided are pretty much free until and unless the user wants to upgrade and for that, he has to pay so that he can use it for its business in the best way. So, that is also one of the ways Google can make money.
Wrapping it up!
In the end, we would like to say that the business model and the revenue model of the Google Company depend on a lot of factors for sure.
Apart from the options mentioned above, there are so many other ways with the help of which Google can make money in the best way such as Google Chrome, Google Play Store and other important apps and methods.
Hence, there is no doubt that people need to know more and more about the Google business model for sure. So, we hope that this article is informative for you.
Having any query about the business model of Google? Feel free to ask us in the comments.