Google is one of the most valuable companies around the world, just after Amazon and Apple. As of January 2020, it is the fourth company to ever reach the $1 trillion market value mark. But unlike Apple, which depends on more singular business arms like iPhones to boost revenue, Google has multiple major business arms that provide a stream of income. The following are the most profitable lines of businesses for Google.
AdWords and Search Advertising
The company’s proprietary advertising service, Google AdWords, is still a major business arm. It is a major contributor to Google’s revenue at 68.
Across all industries, companies continue to boost up the cost per click (CPC). In the year 2011, the insurance industry accounted for 24% of Google’s revenue from AdWords. It cost $54.91 for top keywords like “auto insurance price quotes” and “life insurance comparison quotes.”
On the other hand, other industries have much pricier costs per click. More and more companies are competing to gain the top spot in Google AdWords, further boosting up the price of Google’s aggregate paid clicks.
Google AdSense is another popular Google line of business.
AdWords enables businesses of all sizes to advertise across the company’s websites, like Gmail, YouTube, and the Google search engine, Google AdSense enables third-party websites display Google advertising on their pages.
Through the AdWords and AdSense advertising products, Google also hopes to continue its dominance on the mobile web.
Google Fiber was first announced in 2010. It is a broadband service that offers high-speed gigabit internet and TV at rates up to 1000 mbps. At present Google Fiber is available and operating in 18 cities. According to one Google executive, Fiber was the costliest project out of all Google’s projects.
The Nest Learning Thermostat was one of the first Internet of Things (IoT) products from houses to achieve a widespread audience.
In January 2014, Google acquired startup Nest Labs, which is a home service of smart interconnected thermostats and smoke detectors, for $3.2 billion.
During the time of acquisition, Nest Founder and chief executive officer Tony Fadell claimed to have sold around 1 million thermostats.
Under Google’s wings, Nest continues to specialize on thermometers and other smart home technologies.
Verily Life Sciences
Verily Life Sciences was formerly known as Google Life Sciences, and it focuses on a wide range of life science and human health projects, such as bandage-sized glucose monitor and a perfect benchmark of human health.
Verily is focused on seeking solutions to diseases and other global health problems, such as smart contact lenses, assistive eating devices for people with hand disabilities, and other healthcare problems.
Google also has other non-search engine lines of business revenue. However, many of these are done in secret.
For instance, projects like Waymo self-driving cars came out of Google’s “moonshot” research and development arm X Development.
Fueled by the highly profitable AdWords and AdSense products, Google remains one of the five most valuable companies in the world.
Despite some investors’ opinion that the company’s other businesses are driving down the growth of the company, its diversification of major businesses continues to take the company to new milestones.
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