How does Google make money?

Written By: Nikhil Pandey | Updated: May 17, 2022, 03:44 PM IST

Alphabet Inc is a conglomerate of companies, the largest of which is Google. Web surfing and searching, cloud computing, streaming entertainment, mobile operating systems and applications, and more are among the company's software and Internet-related services and solutions. Advertising accounts for a significant amount of Alphabet's revenue, which is generated through its numerous platforms and services.

Here are Google's six revenue streams:
 

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Google Ads provide 80 per cent of the company's current revenue. This will generate more than $147 billion in income by 2020.

Advertisements can be found on Google searches or YouTube videos.

A single click on an advertisement can earn you anywhere from a few cents to over $50.

Google distributes relevant information directly to people and receives billions of clicks as a result of connecting ads to queries, meaning the ads are relevant to the search parameters.
 

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Google Cloud Platform

Although Google provides free cloud storage, it is limited. It does charge $0.20 per GB of storage for additional storage.

It also charges $0.12 per GB and $0.05 for 10,000 Class A operations for network and operational costs.

Per 10,000 operations, Class B operations cost $0.004. Monitoring, troubleshooting, and improving infrastructure and application performance are all part of operations.

In the third quarter of 2021, Google Cloud brought in 4.9 billion U.S. dollars in revenue. Google Cloud, also known as Google Cloud Platform (GCP), is a public cloud computing platform that offers computing resources for developing, deploying, as well as operating and maintaining applications and services in the cloud.
 

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Hardware

Google Pixel smartphones, tablets, laptops, and earbuds, as well as Google Nest smart home products and Chromecast digital media players, have all been released in recent years. Fitbits and a variety of game controllers are also available. In 2021, Google hardware earn over $19.6 billion in revenue, with a profit of more than $6.1 billion.Google Pixel smartphones, tablets, laptops, and earbuds, as well as Google Nest smart home products and Chromecast digital media players, have all been released in recent years. Fitbits and a variety of game controllers are also available. In 2021, Google hardware earn over $19.6 billion in revenue, with a profit of more than $6.1 billion.

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Google Playstore

The Google Playstore is an app store that includes both service-based apps and games. For $4.99 per month or $29.99 per year, Google offers a Play Pass. Otherwise, apps on the store range in price from free to $14.99 per month. On select goods, the pass grants you access to games and applications without ads or in-app purchases. It does not grant access to the entire Playstore. Before they may upload their first app, creators must pay a $25 charge.
 

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Premium YouTube Content

YouTube Premium is a membership service that allows you to watch millions of YouTube videos without being interrupted by advertisements. It costs $11.99 each month to subscribe. YouTube Premium generates around $600 million in sales, representing for about 8% of the company's overall revenue.
 

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YouTube Television

YouTube TV is a live television streaming service that also offers on-demand content and DVR options. Over 85 television networks, including the Big Four, are available to viewers. Unlimited subscription to YouTube TV is $64.99 per month. YouTube TV is still relatively young, and its overall impact on Google's income is unknown.
 

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