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Did they really make money off search? I was always under impression that search was only a gateway to their services ecosystem and its that what makes them mon

by Ralfp 5y ago

Did they really make money off search? I was always under impression that search was only a gateway to their services ecosystem and its that what makes them money.

jorvi 5y ago
Search and ads are intrinsically linked and the vast majority of their profit comes from ads.
cableshaft 5y ago
"Search is Google’s most lucrative unit. In 2020, the company generated $104 billion in “search and other” revenues, making up 71% of Google’s ad revenue and 57% of Alphabet’s total revenue. That “search and other” figure includes revenue generated on Google’s search properties, along with ads on other Google-owned properties like Gmail, Maps and the Google Play app store." https://www.cnbc.com/2021/05/18/how-does-google-make-money-advertising-business-breakdown-.html https://www.cnbc.com/2021/05/18/how-does-google-make-money-a... It pays enough that they're willing to pay Apple up to $15 billion a year so Apple doesn't make their own search engine and leave Google as the default search engine on Safari: https://gadgets360.com/apps/news/google-apple-default-search-engine-safari-pay-usd-15-billion-iphone-ipad-mac-2021-microsoft-bing-2520582 https://gadgets360.com/apps/news/google-apple-default-search...
- lupire 5y ago
  That's Search Ads, BTW, which does not exist in Workspace for domains (a paid product).
  - cableshaft 5y ago
    I'm not sure what point you're trying to make. Are you suggesting they're making more money off of Workspace than they are from ads from search? Because that article says otherwise (said search ads makes 57% of Alphabet's -- Google's parent company -- total revenue) Looks like Google Cloud (which includes Google Workspaces) is still losing money overall, not gaining money: "Google’s public cloud has been chasing competing services from Amazon and Microsoft for so long, you might think it would be getting winded. But the critical Alphabet division keeps on keeping on, yesterday reporting revenues of more than $5.5 billion for the fourth quarter. That was the good news. The bad news was that Google Cloud accrued operating losses worth $890 million at the same time." https://techcrunch.com/2022/02/02/with-a-22b-run-rate-does-it-matter-if-google-cloud-still-loses-money/ https://techcrunch.com/2022/02/02/with-a-22b-run-rate-does-i... Assuming they have that revenue every quarter, that still only means $18 billion of revenue per year, which is a tiny fraction of search, and barely more than they give Apple just to keep being the default search engine.

by Ralfp 5y ago

Did they really make money off search? I was always under impression that search was only a gateway to their services ecosystem and its that what makes them money.

jorvi 5y ago

Search and ads are intrinsically linked and the vast majority of their profit comes from ads.

cableshaft 5y ago

"Search is Google’s most lucrative unit. In 2020, the company generated $104 billion in “search and other” revenues, making up 71% of Google’s ad revenue and 57% of Alphabet’s total revenue. That “search and other” figure includes revenue generated on Google’s search properties, along with ads on other Google-owned properties like Gmail, Maps and the Google Play app store." https://www.cnbc.com/2021/05/18/how-does-google-make-money-advertising-business-breakdown-.html https://www.cnbc.com/2021/05/18/how-does-google-make-money-a... It pays enough that they're willing to pay Apple up to $15 billion a year so Apple doesn't make their own search engine and leave Google as the default search engine on Safari: https://gadgets360.com/apps/news/google-apple-default-search-engine-safari-pay-usd-15-billion-iphone-ipad-mac-2021-microsoft-bing-2520582 https://gadgets360.com/apps/news/google-apple-default-search...

lupire 5y ago
That's Search Ads, BTW, which does not exist in Workspace for domains (a paid product).
- cableshaft 5y ago
  I'm not sure what point you're trying to make. Are you suggesting they're making more money off of Workspace than they are from ads from search? Because that article says otherwise (said search ads makes 57% of Alphabet's -- Google's parent company -- total revenue) Looks like Google Cloud (which includes Google Workspaces) is still losing money overall, not gaining money: "Google’s public cloud has been chasing competing services from Amazon and Microsoft for so long, you might think it would be getting winded. But the critical Alphabet division keeps on keeping on, yesterday reporting revenues of more than $5.5 billion for the fourth quarter. That was the good news. The bad news was that Google Cloud accrued operating losses worth $890 million at the same time." https://techcrunch.com/2022/02/02/with-a-22b-run-rate-does-it-matter-if-google-cloud-still-loses-money/ https://techcrunch.com/2022/02/02/with-a-22b-run-rate-does-i... Assuming they have that revenue every quarter, that still only means $18 billion of revenue per year, which is a tiny fraction of search, and barely more than they give Apple just to keep being the default search engine.