Google is one of the biggest tech companies in the world. Every day billions of people use services like Google Search, YouTube, Gmail, Google Drive and Google Maps. But the question is how does Google earn money? Despite providing free services, Google’s parent company Alphabet generated revenue of approximately $350 billion in 2024.
In this blog, we will understand in detail what are Google income sources, which segment brings the most money, and what will be Google’s business model in the future.
Google’s Business Model – An Overview
Google’s business model is primarily based on advertising. But apart from ads, there are multiple revenue streams – like Cloud, Subscriptions, Devices and Experimental Projects.
Alphabet’s revenue breakdown in 2024 was something like this:
• Google Search & Other Ads – ~$198.1B (~56.6%)
• YouTube Ads – ~$36.1B (~10.3%)
• Google Network Ads – ~$30.4B (~8.7%)
• Google Cloud – ~$43.2B (~12.4%)
• Subscriptions, Platforms & Devices – ~$40.3B (~11.5%)
• Other Bets (Waymo, Verily, etc.) – ~$1.6B (~0.5%)
This makes it clear that 67%+ of Google’s earnings come from ads.
Major Sources of Google Income
1. Google Search Ads – Primary Income Source
Google Search is the world’s largest search engine with billions of queries daily. When you search for something, you see sponsored results at the top or bottom of the page. These are called Google Search Ads.
• Advertisers pay on the pay-per-click (PPC) model.
• In 2024 alone, Google Search and other ads will generate more than $198B in revenue.
• This is 56%+ of Alphabet’s total revenue.
2. YouTube Ads Revenue
YouTube is Google’s largest video platform with 2+ billion active users every month.
YouTube generates revenue from multiple ad formats:
• Skippable video ads
• Non-skippable ads
• Display ads
• Shorts monetization
YouTube Ads revenue in 2024 was ~$36.1B, which is ~10% of Alphabet’s total income.
3. Google Network (Partner-Site Ads)
Google not only shows ads on its own platforms, but also on other websites and apps. This system runs through Google AdSense and AdMob.
The network revenue in 2024 was ~$30.4B, which is 8–9% of Alphabet’s income.
But interestingly this segment declined a bit compared to 2023.
4. Google Cloud Services
Google Cloud is now one of Alphabet’s fastest growing segments. It has two major products:
• Google Cloud Platform (GCP): Infrastructure, AI, Machine Learning, Databases, APIs
• Google Workspace: Gmail, Google Drive, Docs, Sheets, Meet (paid enterprise version)
Google Cloud revenue in 2024 was ~$43.2B (12.4% of total). This segment is seeing annual growth of around 30%.
5. Subscriptions, Platforms & Devices
Google has not limited its income to just ads and cloud. It also earns good revenue from subscriptions and hardware:
• YouTube Premium & YouTube Music
• Google Play Store (Apps, Games, In-App Purchases)
• Pixel Phones, Nest Devices, Fitbit, Chromecast
This segment’s revenue was ~$40.3B in 2024. This is a fast-growing income source with further growth expected in the future.
6. Alphabet’s “Other Bets” (Waymo, Verily, etc.)
Alphabet also has some experimental projects which are kept in the Other Bets category:
• Waymo: Self-driving cars
• Verily: Life sciences and health tech
• DeepMind: AI research
The contribution of Other Bets will be only $1.6B (~0.5%) in 2024. But these are long-term investments which can multiply revenue in future.
Google Revenue Breakdown 2024 (With Stats)
| Segment | Revenue (2024) | % of Total |
|---|---|---|
| Google Search & Other Ads | ~$198.1B | ~56.6% |
| YouTube Ads | ~$36.1B | ~10.3% |
| Google Network Ads | ~$30.4B | ~8.7% |
| Google Cloud | ~$43.2B | ~12.4% |
| Subscriptions, Platforms & Devices | ~$40.3B | ~11.5% |
| Other Bets (Waymo, Verily, etc.) | ~$1.6B | ~0.5% |
| Total (Approx.) | ~$350B |
Key Insights- Why Ads still Dominate
• Ads = ~67% of total revenue → Search + YouTube + Network
• Cloud fastest growing segment (~30% growth year-on-year)
• Subscriptions (YouTube Premium, Play Store) are increasing steadily.
• Other Bets are small right now, but AI & self-driving projects are promising for the future
Conclusion – Future of Google’s Business Model
Until 2024, Google’s business model was heavily dependent on ads. But the trend is clear:
• Cloud services and AI solutions are growing aggressively
• Subscriptions & hardware are providing a stable recurring revenue
• Other bets like Waymo could create a new billion-dollar business in the future
Google’s focus for the next 5 years will be AI, Cloud and recurring subscription income.
FAQs
Q1. How does Google earn money from ads?
Google charges advertisers for pay-per-click and impressions. These ads appear on Search, YouTube and partner websites.
Q2. How much money does Google make from YouTube?
Google earned ~$36B from YouTube Ads in 2024. Separate revenue comes from YouTube Premium subscriptions.
Q3. What is Google Cloud revenue in 2024?
Google Cloud generated ~$43.2B revenue, accounting for 12%+ share.
Q4. What are Google’s other income sources?
Apart from ads, Google also earns income from Cloud, Subscriptions (YouTube Premium, Play Store), Hardware (Pixel, Nest), and its Other Bets like Waymo and Verily.
This was our detailed guide on How Google Earns Money in 2024. If you found it helpful, explore more insightful articles on our Business Page or visit our Website for the latest updates and resources.
Sipun Pradhan is the founder & editor at Newz Express, covering the latest tech and auto news in India
