How Does Google Make Money (Different Sources Listed)

According to Google, their primary source of revenue is advertising, the advertising from their sites and apps. 

Like many, if you are curious about how Google makes money, here I am to help you.

In this article, I have covered all the revenue sources of Google. Do you want to know more about it? Then let’s get started.  

How Does Google Make Money In 2024?

Google has many revenue sources. I have compiled some essential sources to make you understand Google’s income. 

If you want a quick overview of these sources, here they are:

  1. Google Cloud Services
  2. Google Play
  3. Google Maps
  4. Google Pay
  5. YouTube TV
  6. YouTube Premium
  7. Google Ads and AdSense
  8. Hardware
  9. Google Network
  10. Google Bets

Now, you have a clear idea about these sources. Let’s get the detail of each source. 

1. Google Cloud Service

In Google Cloud Service, one can store digital data on the remote server from the off-site location. 

Cloud services enable companies to maintain, store, and access data so they don’t need to operate their own data center. By using cloud services, organizations can save on their expenses. 

Google Cloud Service

These organizations can use cloud services according to their need. They can use this server to save data, such as business data, files, images, or videos. 

In 2022, Google Cloud Services generated $26.28 billion in revenue, which makes up 9.4% of all income of Google. 

Google Cloud Services is one of the primary ways for Google to generate revenue. 

2. Google Play

Google Play is an online store of Google. People can find their favorite apps, movies, games, TV shows, books, and more in that store.

Google Play Store provides 2 million apps and games. There are over 2.5 billion active users on Google Play monthly.   

Google Play is available in more than 190 nations. 

Furthermore, Google Play only charges service fees to developers who want to offer a paid app or want to sell digital goods and services through their app. 

Google Play

Only 3% of developers on Google Play are paying this service fee. The remaining 97% of developers can use Google Play for free. 

Lastly, Google Play earns money from this service fee from developers. That is also contributing to the revenue of Google. 

3. Google Maps

If you didn’t already know, Google Maps make money too!

Google Maps generate revenue in three primary ways. These ways are as follows:

  1. Ads

Local businesses post their ads on Google Maps to attract customers. Local businesses can create a profile on Google Maps that allows businesses to be found more easily. 

When someone searches for nearby businesses at that time, your business comes up in search results, as shown in the below screenshot. 

How Does Google Make Money - Maps

For these benefits, local companies are paying Google Maps. 

  1. API navigation

Companies like Uber, Pokemon, and Airbnb pay Google to include Google Maps API in their services. 

This API allows two apps to talk to each other. Google Maps sell these API to companies that use them according to their need. 

Google API is categorized into three products, Custom maps, Routes, and Places. 

  1. Partnerships

Google Maps partners with many cab-hailing companies worldwide, such as Uber, Ola, and Lyft. 

Within Google Maps, users can find cabs and the pricing of that cabs. 

In the Cab-hailing section of Google Maps, there are sticker Ads, meaning these companies pay Google Maps per impression or click. 

By using these three ways, Google Maps earns money and contributes to Google’s revenue. 

4. Google Pay

With 150 million monthly active users across 40 nations, Google Pay is a leading payment app worldwide. Every month people make 2.5 billion transactions by using Google Pay. 

Google Pay

Google Pay does not earn money directly from the app. Instead, they make money from commissions through mobile recharge, Bills, UPI transactions, Scratch cards, etc. 

Let’s get into detail about how Google Pay earns money.

  1. Commission through mobile recharge

When people recharge their mobile through Google Pay, then the service provider will pay Google Pay. 

  1. Commission through Bill Payments

Google Pay always alerts you to pay for your electricity, FASTag, gas cylinder, and tv cable recharge. When you pay your bills through Google Pay that time, Google takes charges from the service providers. 

Google Pay always receives a commission on every bill paid through Google Pay. 

5. YouTube TV

Google generated more than $29 billion in revenue from YouTube in 2022. It accounted for 10% of all Google revenue. 

YouTube TV is a US-exclusive live TV. This TV is streaming cable channels such as ESPN, ABC, FOX, NBC, Disney, and many more on YouTube. 

With over 1 million subscribers, YouTube TV significantly contributes to YouTub’s revenue. 

This service costs $49.99/month, providing more than  70 networks and six different accounts. 

So, Google earns money through these YouTube TV subscriptions. 

6. YouTube Premium

YouTube has launched a freemium revenue model similar to Netflix‘s business model. 

YouTube Premium

YouTube Premium gives you uninterrupted experience on YouTube, YouTube Gaming, and YouTube Music. 

YouTube Premium membership provides you with the following perks: 

  1. Offline songs and videos
  2. Ad-free videos
  3. Access to YouTube Premium content
  4. YouTube Music Premium
  5. Background play when your screen is off

Because of all these perks, many YouTube users are subscribing to YouTube Premium. 

YouTube Premium comes at $11.99/Month in the United States. This subscription cost varies by country. 

According to Statista, there are 26.7 million YouTube Premium subscribers in the United States as of 2024. 

With these subscriptions, Google generates some of its revenue.

7. Google Ads And AdSense

According to Statista, Google advertising generated $224.47 billion in revenue in 2022. Google generated its 80% of revenue through ads. 

We can find these ads directly on Google search or YouTube videos. Clicking these ads from anywhere in the world can generate a few cents to $50. 

Google finds relevant content to show its ads. Relevant ads on that content get many clicks. 

We can say this; Google ads are the primary income source of Google. 

8. Hardware

The latest update on Google shows that Google generated $19.6 billion in revenue in 2021 from hardware, with a $6.1 billion profit. 

Google produces much hardware, such as smartphones, earbuds, laptops, and tablets. 

They also produce smart home products, game controllers, etc. 

Hardware revenue makes up more than 10% of all Google revenue. 

9. Google Network

According to CNBC, the third main revenue contributor to Google’s revenue is Google Network.  

Google Network contributed $23 billion in revenue in 2022. This revenue makes up almost 16% of all Google Ad revenue. 

Google networks sell ads outside Google’s properties. Publishers can use the Google platform for sales. 

They can also use Google tools to manage their campaigns. The publishers and Google split this revenue. 

By using Google Network, Publishers as well as Google both earn money. 

10. Google Bets 

Google Bets is in the early stage of its business. Basically, Google bets are the startups. 

In 2022, Google generated over 1 billion in revenue from its bets. However, in the same year, they lost $6 billion in Google bets. 

Google uses the money generated from searches and bets on its other innovative industries. 

Google’s other bets mainly generate revenue from the below bets:

  1. R&D service and Licensing
  2. TV service and Internet
  3. Nest-branded Hardware

Google bets are Google’s future revenue generators. 

Related Read:

Conclusion: How Does Google Make Money

Here we are at the end of the article. I want to sum up this by saying that Google earns money in many ways. 

In this article, I have provided you with some of the critical revenue generators of Google. All these means are essential parts of Google. 

If you know more ways Google earns money, comment below and let us know. 

FAQs

 How does Google make money if they are free?

Google provides free content to its users. But Google earns money from its other services such as Google Cloud, Playstore, Hardware, and many more. 

 Has Google ever made a profit?

According to Fourweekmba, Google generated a net profit of $60 billion in 2022, which is less than $16 billion in 2021. 

 How much money does Google make in a day?

According to Seoquake, Google makes more than $0.44 billion in one day. 

 What is the most significant source of revenue for Google?

According to Statista, advertising is Google’s most significant revenue source. Google generated more than $279 billion in revenue from its advertisement. 

 What percentage of Google’s revenue comes from the United States?

According to Businessquant, Google generated $25.03 billion in revenue in the United States, which is more than 45% of its overall top line. 

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