Google Revenue Breakdown

	Alphabet’s Google Revenues (2022)
Google Search & other	$162.45B
Google Network Members	$32.78B
YouTube ads	$29.24B
Google Other	$29B
Google Cloud	$26.28B
Other Bets	$1B

Alphabet generated over $282B from Google search and others, $32.78 billion from the Network members (Adsense and AdMob), $29.2 billion from YouTube Ads, $26.28B from the Cloud, and $29 billion from other sources (Google Play, Hardware devices, and other services).

	2022
AdWords	$162B
AdSense	$32.8B

In 2022, Google generated $162 billion from AdWords and $32.8 billion from AdSense and AdMob.

Within Google, there are many moving parts.

For instance, successfully integrated into Google’s advertising machine, YouTube is a powerhouse that generates $30 billion in ad revenue annually.

youtube-ad-revenue — YouTube, by 2022, generated over $29 billion in advertising revenues.

To appreciate the complexity of Google’s advertising machine, you can see the various moving parts of Google’s business model.

google-revenue — In 2022, Google generated over $282 billion in revenues, of which over $162 billion from Google Search, over $29 billion from YouTube Ads, and almost $33 billion from Network Members’ properties. In addition, Google generated over $29 billion in other revenue, over $26 billion from Google Cloud, and over a billion dollars from other bets.

Indeed, Google, rebranded as Alphabet, is a company that now has other important segments.

Indeed, Google other comprises revenue from things like the Play Store, hardware, and YouTube Prime.

Google also invests a massive amount of money into bets that might turn into moonshots.

For some context, in 2022, these bets generated a billion dollars in revenue, yet they reported a net loss of over $6 billion. In short, each year, Google sinks billions into these bets.

How can Google afford this?

google-other-bets — Of Google’s (Alphabet) over $282 billion revenue for 2022, Google also generated over a billion dollars from a group of startup bets, which Google considers potential moonshots (companies that might open up new industries). Those Google’s bets also generated a loss for the company of over $6 billion in the same year. In short, Google is using the money generated by search and betting it on other innovative industries. Of Google’s (Alphabet) over $282 billion revenue for 2022, Google also generated over a billion dollars from a group of startup bets, which Google considers potential moonshots (companies that might open up new industries). Those Google’s bets also generated a loss for the company of over $6 billion in the same year. In short, Google is using the money generated by search and betting it on other innovative industries.

That’s thanks to its advertising cash printing machine.

Indeed, today Google is a key player in digital advertising, generating more than $250 billion in revenue between Search, Network, and YouTube Ads.

This advertising machine runs at very fat margins.

To appreciate how these margins turned Google into one of the most prominent tech businesses in the world, you ca look at its TAC Rate, or how much Google spends each year, to keep generating traffic to its web properties.

traffic-acquisition-cost — The traffic acquisition cost represents the expenses incurred by an internet company, like Google, to gain qualified traffic – on its pages – for monetization. Over the years, Google has been able to reduce its traffic acquisition costs and, in any case, to keep it stable. In 2022 Google spent 21.75% of its total advertising revenues (over $48 billion) to guarantee its traffic on several desktop and mobile devices across the web.

In 2022 alone, Google paid out about $49 billion into the publishing ecosystem to keep it running so that Google itself can be the most valuable search engine on earth!

For some context, for each dollar spent in traffic acquisition, Google makes $4.6!