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 |
2022 | |
AdWords | $162B |
AdSense | $32.8B |
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.

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

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?

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.

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!

That also explains why many tech players are trying to attack Google’s business model.
While the digital advertising industry is more fragmented, the search engine industry is monopolized by Google.
To appreciate that, look at the second most popular search engine, Bing, and the difference between Google and Bing!

That also explains why Microsoft partnered up with OpenAI to bring Google down.

In a world where Google transformed anyone into a content developer, thus publishing blogs on the web.
OpenAI is instead transforming anyone into a product developer, publishing applications with AI in them.

Related To Google




Google Traffic Acquisition Costs











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