Google’s dependence on advertising

Google logo97%

Despite being one of the most successful technology companies in the world and being one of the few Internet-born companies to survive (and thrive) from the “Internet bubble” of the 1990s through the present, Google is still a bit of a one-trick-pony.  Now they might be the finest one-trick-pony in the business, but they’re still completely reliant on one (and really only one) form of revenue – advertising.  In fact, according to the infographic below and Google’s own financial disclosures, the company derives 97% of their revenue from this avenue.  Now this isn’t really a doom and gloom message since few companies have done more to innovate in this space and monetize new channels or methods of advertising  in the way Google has in their relatively short life ($2.5 billion in mobile advertising which is expected to double this year).  That said I am surprised that despite their dominance with products like Android and Google Apps for Business, those don’t represent a more meaningful slice of Google’s revenue.

Google infographic

Related articles:

Advertisements