Google isn’t just the most popular website in the world. It’s also one of the most valuable companies with an astounding revenue that reaches into the billions. If you don’t know much about Google’s business strategy, then you might be wondering how Google is able to amass all of this money since the search engine is free. It’s all about properly using its online traffic and businesses.
YouTube
Many people think that Google makes a lot of its money from YouTube, which it acquired in 2006. The YouTube website was purchased for $1.65 billion and it has become one of the most popular websites because people love uploading and streaming videos.
While YouTube makes billions of dollars, the truth is that it only makes money due to one of Google’s services. Without this, YouTube would only be worth millions. That service is AdWords, which will be explained later.
Android OS
Others think that Google makes most of its money from the Android OS. Android has become one of the biggest operating systems in the world. It owns roughly half of the mobile market. The only OS that can even compare to Android in terms of sales and popularity is Apple’s iOS.
While there are many purchases made through the Google Play Store, and Google makes money by selling certain tablets and smartphones, this only creates a small portion of Google’s overall wealth.
AdWords
This is where over 90 percent Google’s wealth comes from. AdWords is the number one online advertising platform in the world. Not only does every business owner recommend it, but Google uses it to great effect. The reason for this is that Google commands over 80 percent of the search engine market.
Businesses only want to advertise with other companies that can help them make money. Would you rather advertise with the biggest search engine, or one of the smaller ones like Bing or Yahoo? The choice is obvious.
Not only that, but AdWords is universally accepted among publishers because it’s easy to use, has many business partners and helps website owners make a lot of money.
This service alone has generated over $32 billion, which makes it the primary financial vehicle for Google.
Google’s search engine is popular, but the company makes most of its money through advertising with AdWords. Even its many acquisitions and popular products pale in comparison to the money generated by AdWords.
