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Google’s revenue from sources other than advertising increases

Advertising has been a major source of revenue for Google. Any sort of advertisements digitally in the world today is likely to involve some service of google at least for the display of the ads.

Google has control of over 70 % of the market of search advertisement. Approximately one-third of the amount spent on the advertising digitally is currently going to google. This has helped in the company becoming one of the biggest tech companies in the world. However in the recent past the company has been facing competition from other players like Amazon and the social media sites and therefore their revenue from advertisement has been taking a bit of a hit.

The company is still very stable but the investors are now beginning to track inadequacies in the company. Alphabet which is the parent company of Google had announced their earnings for third quarter on the 28th of October. Though, the revenue of the company is growing healthily still, the company has seen a drop in the profit margins even after a 20% growth in sales to $40.5 billion in comparison to $33.7 billion last year. The company has a spending of more than 20% of the revenue on costs which it calls TAC which is the cost of traffic acquisition.

Google however is now beginning to figure out ways in which it is generating cash from sources beyond advertisement revenue. The company is now offering a range of services and hardware products from the Google Cloud enterprise and G Suite programs.

The other revenue of Google in this quarter was $6.43 billion in the quarter which  is 16% of the overall revenue of the company and is up by 15% from the same time last year.

Gary Swords
Gary Swords Subscriber
Contributing Author At Market Research 24

Gary has a total experience of 6 years in the field of Technology. He has completed Engineering Degree and is actively involved in the writing field from the last 5 years. He works as the Contributing Author at Market Research 24’s Technology section and believes that a writer is not just a wordsmith and one should enter into the field of writing only if they have a passion to write. With a combination of stronghold on the writing field and giant experience, he easily carries out all the activities skillfully. At the same time, he always gives first preference to the work satisfaction and sees that all team members give 100% to their work.

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