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How does Google make money?



Google primarily makes money through its advertising business, particularly through its advertising platforms like Google Ads (formerly known as AdWords) and Google AdSense. Here's how it works:

  1. Google Ads (formerly AdWords): Google Ads is an advertising platform where businesses and advertisers bid on keywords to display their ads on Google's search engine results pages (SERPs) and other Google-owned platforms like YouTube, Gmail, and partner websites within the Google Display Network. Advertisers pay Google each time a user clicks on their ad (pay-per-click model) or when their ad is displayed (impression-based model). This pay-per-click advertising model generates significant revenue for Google.

  2. Google AdSense: Google AdSense is a program that allows website owners and publishers to display Google ads on their websites. Google serves relevant ads based on the content of the website, and website owners earn money when visitors click on those ads or view them (impressions). Google shares a portion of the revenue generated from these clicks or impressions with the website owners.

  3. Other Advertising Services: Besides Google Ads and AdSense, Google also generates revenue through various other advertising services and platforms, including display advertising, video advertising on YouTube, app promotion through Google Play, and more.

  4. Cloud Services: Google Cloud Platform (GCP) is Google's cloud computing service that provides infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS) offerings. Google generates revenue by charging businesses for using its cloud services, including computing power, storage, database services, machine learning tools, and more.

  5. Hardware Products: Google manufactures and sells hardware products such as Pixel smartphones, Pixelbook laptops, Google Nest smart home devices (formerly known as Google Home), Chromecast streaming devices, and more. Revenue from the sale of these hardware products contributes to Google's overall revenue.

  6. Google Play Store: Google earns revenue from the Google Play Store, an online marketplace for Android apps, games, digital content (such as movies, music, and ebooks), and subscriptions. Google takes a percentage of the sales made through the Play Store.

  7. Other Products and Services: Google offers a wide range of products and services, including Google Workspace (formerly G Suite) for businesses, Google Maps, Google Search (though primarily fueled by advertising), Google Shopping, Google Drive, YouTube Premium, YouTube TV, and more. While many of these services may not directly generate revenue, they contribute to Google's ecosystem and overall user engagement, indirectly supporting its advertising business.

Overall, advertising remains Google's primary source of revenue, accounting for the majority of its income.

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