How Google Makes Its Money

Posted by Erin

For a company that for the longest time was touted to "not have a product," Google is doing plenty well, and is poised to bring us all into the new age of connectivity. The editors at Best Accounting Schools decided to research the topic; below are some key facts and figures. Click here for the infographic!

Google made $33.3 billion last year
- With 97% ($32.2 bil) coming from online ads
- Making Google Ads more valuable than Panama (GDP)[3]
- And the 31 poorest countries in the world combined
- 70% of this revenue is from adwords, which allows business to advertise by popular keywords

Most expensive keywords
- 1. Insurance: $54.31 per click
- 2. Mortgage:$47.12 per click
- 3. Attorney $47.07 per click
- 4. Loans:$44.28 per click
- 5. Credit $36.06 per click
- 6. Lawyer
- 7. Donate
- 8. Degree
- 9. hosting
- 10. Claim
- 11. Conference Call
- 12. Trading
- 13. Software
- 14. Recovery
- 15. Transfer
- 16. Gas/Electricity
- 17. Classes
- 18. Rehab
- 19. Treatment
- 20. Cord Blood

And 30% is from AdSense
- Which allows business to advertise on particular sites
- Some of the most expensive ad placements
- 1. CBS March Madness on Demand $70 cost per thousand views
- 2. Hulu $35 cost per thousand views
- 3. Aol homepage takeover $500,000-$700,000
Chances are, you'll click on a link at some point. Google wants you to stay online as long as possible.

Both Google and other acquisitions are furthering Google's cause.
Google is the lab where future projects are developed. There, several ways in which to keep you online have been developed:
Driverless cars
- 300,000 miles have been logged in Google's driverless cars, which use sensors and Google map technology to keep you on the road
- If you don't have to pay attention to the road, you can be online, for work, play, Google, etc.
Google Glass
- A form of augmented reality glasses, allow you to be online all the time with an unobtrusive display within your upper visual field
The "web of things"
- Involves embedding many ordinary devices with internet connectivity
- Televisions, thermostats, refrigerators
Google Fiber
- Is busy hooking up Kansas City, Missouri, Provo, Utah, and Austin Texas, with lighting fast fiber optic internet access
- Including: 1 terabyte of Google drive storage
- and, 2 terabyte DVR service for subscribers
- That can record up to 8 tv shows at once
- Time Magazine has noted that Google does not want to enter the ISP business, but rather wants to shame existing ISPs into improving service so searches can be done more quickly
Plans for an elevator to space...
- Because what would you do out there without Google maps?

Other acquisitions by Google Include:
- YouTube
- Purchased for a--then--astounding $1.65 billion in 2006
- Youtube has proved to be plenty worth it
- As it is now the third most popular site online, with billions of ads shown yearly
- Motorola Mobility
- Purchased in 2011 for $12.5 billion
- Motorola is one of 39 Android handset producers
- Was bought primarily to "supercharge the Android ecosystem."
- Other Acquisitions include
- $676 mil for ITA software, a company merged into Google Flights
- $450 mil for Wildfire Interactive, a social network marketing engine
- $400 mil for AdMeld, an online advertising service
- $1.3 bil for Waze, a socially driven mapping technology to merge with Google Maps
- And $228 mil for slide.com, a social gaming site
- With 83.18% of searches worldwide occurring on Google, and the right people thinking about how to funnel that for the collective, and profitable, good, Google's not going anywhere. Just buckle up and enjoy the ride.

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