Google’s empire is based on online advertising. The company revolutionized the market a few decades ago with its Google AdSense, created a business opportunity and, above all, knew how to find a way to generate income and profits when its service did not have a basis on which to do it (Google uses it, not forget it, free of charge).Since then and until now, Google has been growing and growing and its weight in the advertising market has been increasing and increasing. It is the strongest player in the online advertising market, which makes it the strongest player in the advertising market at a general level (so much, in fact, that the advertising forecasts for 2020 indicate that Google will have 23% of the entire global advertising market ). Of the search ad market, Google has 70% of the entire market.But despite this, Google’s empire does not rest on foundations that are proof of all threats, but rather on ones that could collapse at any moment. As they remember in Quartz , the power of Google and its empire will not fall from one day to the next, but no matter how strong they are, they cannot be trusted that everything will continue as before.Online advertising is the strong stone of their business, but they need to find alternatives to continue generating income and to cover what they can lose.Google continues to cash in on ads.
Its financial data, presented Ecuador Cell Phone Numbers List quarter-over-quarter, continues to present print figures. Google has a very high income and considerable profits. Those numbers come thanks to online advertising.That’s the ‘pretty’ part of the data and the tip of the iceberg of the company’s financial information, but it’s not the whole story. Slight cracks can already be found at the base of the iceberg. And, continuing with that metaphor, things are not very easy for icebergs in times of global warming.The latest financial data from Google was positive (although the company was penalized in its stock prices because it fell short of forecasts).
In the last quarter, Google had revenues of 40,500 million dollars, 20% year-on-year, and 28,650 million dollars, 19% more than in the previous year, in its own services (part of Google’s income comes from ads served by third parties). Google’s advertising revenue grew, year-over-year, by 17%. At the same time, Google has indicated in its financial data that the costs of acquiring traffic already take 20% of its income. Earning income is therefore more difficult every time.They are not the only complex points for the future. Google has to face pressure from both social media (especially Facebook) and Amazon for ad revenue. For now, both Facebook and Amazon still have a smaller share of the market, but future forecasts indicate that it will grow.
Its weight in the market will continue to be much less than Google’s, but this growth will come at the expense of the giant. Their position will continue to be dominant, but it will be so with a lower percentage.If you also add that the market is changing and that new services and new focuses of attention are appearing (such as VoD) that change how content is consumed on the network (and what advertisers pay attention to) it is seen that the future is, in general, complicated.The other businesses The logical thing, therefore, would be for Google to continue to play strong in the advertising market, but also to start working in new areas with the potential to generate income. And that is, they point out in Quartz , what it is doing.
Little by little, Google is developing a parallel business, that of new sources of income alternative to advertising.For now, your financial results fall into a potpourri of “other Google income,” making it more difficult to know exactly what is making money. Google puts its SaaS tools (the GSuite for companies), cloud services or its commitment to hardware there.And that group of proposals has been growing steadily in recent years. In the last quarter, 16% of the company’s revenue already came from there. In the last presentation of results, in fact, its executives pointed out that the cloud business had had a positive impact when it came to presenting solid results.