4 ms·
>>Why they still rely on search/advertising is well known - Replacing a 150 Billion $$$ source of revenue is not a simple thing. You just described The Innovat
by nickv 3y ago
>>Why they still rely on search/advertising is well known - Replacing a 150 Billion $$$ source of revenue is not a simple thing.
You just described The Innovators Dilemma. You'd hope Google, considering how everyone reveres how well run it is would find ways to avoid it, but they didn't not. You know who used to avoid the Innovators Dilemma amazingly well? Apple. You know who does it really well now? Microsoft. They literally killed their OS revenue to grow the company. That's the equivalent of Google killing their search revenue for something new. It's hard to do, but you have to do it in tech.
>>And compared to Facebook which is still 99% dependent on Ads, Google is much more diversified (total revenue is north of 250 billion). They have cloud, youtube, docs, google play, all the alphabet experiments etc.
In 2022, Google was 80%+ directly dependent on Ads for revenue, and 10.3% indirectly dependent on it. Sure, Google does a lot of things but 90.3% of the actual money that keeps the lights on is advertising. Their revenue mix is extremely similar to Meta.
- gsatic 3y agoThey rely on advertising sure, but the part that comes from Search is ~150B $ (out of 250 B $). People kind of dont realize a large chunk of their Ad Tech is not Search related. Its the tooling for the Publishers to sell ad real estate on their sites. Its the tooling for Advertisers to target that real estate based on data collected. Its the ad auctions. Its the ad exchanges. There is ton of shit of going on that no one on the planet is anywhere close to replicating.
- jsnell 3y ago> In 2022, Google was 80%+ directly dependent on Ads for revenue, and 10.3% indirectly dependent on it. I assume the 10.3% is "Google Other". That's things like YouTube Premium, Play Store and hardware. How is any of that even indirectly dependent on ads?
- mattchamb 3y agoI pay for youtube premium so that I dont see ads.
- nickv 3y ago> YouTube Premium is dependent on ads because YouTube as a product is dependent on ads. Without ads, YouTube Premium wouldn't exist. I think the vast majority of that 10.3% is YouTube Premium, YouTube TV, Play Store and their hardware. But I still think most of those are in service to their ad engine.
- jsnell 3y agoThat just circular reasoning. "The company wouldn't exist without ads, so I will consider all this subscription and hardware revenue to actually be ad revenue, and then complain that they're too dependent on ads".