Google: Revenue Redistribution

Written by on January 2, 2013 in Technology - No comments | Print this page


Google Revenue Redistribution

In 2010, Google reported $29.3 billion in revenue, 97 percent of which comes from advertising. This means that the income from all of the programs, services, and products that Google offers add up to only three percent of total revenue. Because of this insignificant value, it can only be assumed that Google’s programs have one goal only: drive up ad revenues. How can advertisements generate over $28 billion? Every month, one billion people visit Google and spend about 200 minutes there; that’s one in seven people in the entire world; that’s 200 billion minutes per month.

Unfortunately, it seems that Google does not always earn these revenues in the most ethical way. Much of the money comes from advertisements for shady, not-so-legitimate internet sources of loans, credit, insurance, attorneys, and mortgages. Google was even recently fined for allowing Canadian pharmacies to illegally advertise on U.S. websites. Is Google implementing some unsavory business practices? Perhaps so, but the search engine works well enough for most.

From: Business MBA


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