Google’s B2 Billion Advertising Business Works
Google’s conference for software developers, Google, which starts on Tuesday, usually involves in-depth tech conversations with a far-reaching view of the future.
But Google’s core business is online advertising.
Alphabet earns more than 80 percent of its revenue from Google ads, which grossed 7 147 billion last year.
Google has been the market leader in online advertising for over a decade and is expected to spend only 29% of global advertising in 2021.
Hardwood floor nearby:
Google logo unveiled on January 8, 2020 at the 2020 Consumer Electronics Show (CES) in Las Vegas, Nevada.
The Google logo, provided by CNBC, was unveiled on January 8, 2020 at the 2020 Consumer Electronics Show (CES) in Las Vegas, Nevada.
Formed in 2015, Alphabet is primarily a holding company for Google, which earns almost all of its revenue and profits.
Google has always presented itself as a tech company and has invested in many remote areas of technology – such as Internet search, mobile phones, artificial intelligence, self-driving cars and healthcare technology. Its conference for software developers, Google I / O, which starts on Tuesday, usually revolves around in-depth tech discussions with far-reaching ideas for the future.
But Google’s core business is online advertising. In 2020, Alphabet earned 183 billion. Of that, 14 147 billion – more than 80% – came from Google’s advertising business, according to the company’s 2020 annual report.
Google has been the market leader in online advertising for over a decade and is expected to spend only 29% of global digital advertising in 2021, according to M-Marketer.
Over the years, Google has developed and acquired a number of ad-tech tools that enable content publishers to make money through advertising, and ad buyers to find what they want in front of Google search, YouTube, maps, and more.
Which they will like.
On other websites on the Internet.
Although search and other features make up most of Google’s advertising revenue, its YouTube advertising business, which in the first quarter grew by about 50% year-on-year, quickly picked up advertising dollars from traditional linear television.
Here are the key parts of Google’s advertising business and how they make money.
Search and other Google features Search is Google’s most profitable unit.In 2020, the company generated 10 104 billion in “search and other” revenue, accounting for 71% of Google’s advertising revenue and 57% of Alphabet’s total revenue.
This “search and other” data includes ads on Gmail, Maps and other Google-owned properties, such as the Google Play App Store, as well as revenue from Google’s search properties.
Advertisers who use Google products can bid on search keywords – specific words and phrases that display their ads to relevant users in search results.
Anyone can choose from a variety of advertiser bidding strategies.
If they want to generate traffic to their site, for example, they can choose to bid “cost per click”, they pay when someone clicks on their ads.
They want to pay as much as they want to pay for that click, and whenever an ad is eligible to appear for a search, the auction will determine if the ad will appear, and In what position