The way people do business is evolving, with the majority of consumers now browsing online for the things they seek. The relevance of establishing digital marketing methods for various firms is demonstrated by the paradigm change in online buying. However, if you don’t focus on Google, your digital marketing efforts will be ineffective. Because Google is the most commonly utilised search engine platform today, it should be a key component of your digital marketing plans. In this post, we’ll go through Google’s position in your digital marketing strategy in detail.
Whatever your business’s speciality is, potential customers will look it up on Google. As a result, developing a successful marketing strategy requires being connected to Google’s right side. Google’s introduction of Search Engine Optimization (SEO) has provided you with several chances to convert organic visitors into potential customers. If marketers embrace Google with both hands, it might be a godsend in disguise. Businesses may benefit from Google’s numerous analytics tools if they want to improve their internet presence. Google is an ally for your business that you cannot ignore, from Google AdWords to Google My Business. Not to mention that the majority of these tools are free, allowing you to start using them right away.
As we saw in the above sections Google has a huge role in the digital marketing of the products, but to understand how big its impact on Google is, we need to get into some basic statistics to understand that. In this blog, we will see the annual revenue of alphabet, from which segments Google is earning revenue so that we can understand the tree and the numbers are interesting so stay tuned with us for knowing that and we also see how popular Google search is in some of the most promising and emerging and advanced economies. So let’s get started now.
Annual Revenue of Alphabet
Revenue in simple terms is the amount of money that a particular company generates in return for the products and services it has to offer. Alphabet is the parent holding company of Google and it has set new benchmarks for technology companies to achieve shortly, we will see how the company is performing in terms of revenue but before getting into that it is worth noting that Google has a range of products and services to offer. Google is more than just a search engine; its products include Android phones, Gmail, YouTube, and the Chrome browser. Hundreds of unseen and undesirable covert services were established or given by Google.
We are taking three years to understand the performance of Alphabet in terms of revenue. We have taken three years because we wanted to see the impact of the covid-19 pandemic too on the performance of the revenue and that can shed some thinking points too. In 2019, the annual revenue of Alphabet was 162 billion USD. In 2020, this rose to 182 billion USD showing an increase of almost 12% increase Year-on-Year. This was the year in which the pandemic struck us and most of the kinds of stuff went online many experts felt that this will have an impact on the revenue of Alphabet in the next year with increased traffic and they were correct, but not all anticipated that the rise will be humongous. For the year 2021, the annual revenue of the giant climbed up to 257 billion USD showing an increase of 41%!.
From where does Alphabet earns the revenue?
The most prominent source of revenue for Alphabet is through advertising, next biggest source of revenue for Alphabet is the Cloud revenue of Google and the rest falls in the other category as Google has a range of products and services to offer like apps and even smartphones. Advertising revenue forms the bulk part of Google’s earnings and it is 80% of the lion’s share, next comes the cloud with a share of a distant 7% and then comes all the products and services combined with the share of around 13%. Next, we will see these two major sources of revenue for Alphabet.
Advertising Revenue of Google
Google Ads is an internet advertising network owned by Google. If you’re going to spend money on advertisements to reach your target demographic, make sure you put it where it will be most effective. Google Ads was created barely two years after Google.com, which has now become the most popular website on the planet. The advertising platform was first launched in October 2000 as Google Adwords, however, it was renamed Google Ads in 2018 following the considerable rebranding. It can help in converting leads to potential customers.
In 2019, the share of advertising in the annual revenue of Alphabet was 135 billion USD out of a total of 162 billion USD. In 2020, this increased up to 145 billion USD showing an increase of almost 7% increase Year-on-Year. For the year 2021, the annual revenue generated through advertising for google rose to 210 billion USD, showing an increase of 55% from the base year of 2019, so this also shows that where companies are putting in their money too for advertising and marketing, right where the Horse’s mouth is.
Google Cloud Revenue of Alphabet
Simply explained, cloud computing is the process of accessing and storing data over the Internet rather than on your hard drive. Google Cloud has become the talk of the town in recent years among numerous cloud providers such as AWS, Microsoft, VMWare, IBM, and others, and with good reason. Google Cloud is an entire range of services that assist you in taking your services global seamlessly. Google Cloud Platform is a part and in a way subset of the Google Cloud Platform. Google Cloud has long been regarded as one of the leading cloud service providers in the IT industry. Software developers can use these services because they provide a dependable and highly scalable infrastructure on which to design, test, and deploy their applications.
In 2019, the share of cloud revenue in the annual revenue of Alphabet was 8945 million USD out of a total of 162 billion USD. In 2020, this showed up a promising increase and rose upto12967 million USD showing an increase of almost 45% increase Year-on-Year. For the year 2021, the annual revenue generated through cloud services offered by google rose to 19639 million USD, showing an increase of 51% from the base year of 2019. So, just in 2 years, the annual revenue generated by cloud services Google more than doubled and it is anticipated that it will see a huge increase in the coming years too. Digital marketing and Search engine optimisation tools and techniques are no longer the things of the future as it was anticipated a few years back but now this is the present too. With a high quantum of data flowing through the internet each day, the tools of interacting and connecting with the customer are also going through a radical change in the present times and what better than Google to understand the changes. That was the specific reason why we selected Google to analyse the developments in the online world as it holds a beacon for the times to come and we are here to monitor all the relevant developments in the digital world and how the internet is changing our lives with each passing day so stay tuned with us for more such interesting blogs about the digital world, latest trends on digital marketing and a plethora of other developments.
