Google is my love. I’ve always desired to work for Google. But alas, I couldn’t get into a premier Indian institute like IIT, DCE or IIM. My dream shattered 🙁 But this certainly wasn’t the end of the tunnel. In 2009, I learned about blogging and how Google provides an opportunity for bloggers to make money online through AdSense. A ray of hope struck me and I realized that though I’ll not be a Google employee, still I could very closely associate myself to my love – Google!
My fate favored me. Google approved my application and I became a Google AdSense publisher in 2009 😀 But those times were a little different from what they are today. These days Google is a martinet when it comes to reviewing AdSense applications. If you’re in, consider yourself lucky.
OK, now onto my main topic for discussion today – Do AdSense publishers form a big part of Google? I believe – Yes. Let’s find out how…
What type of company do you think Google is? Most of you’ll say – Google is a technology company. But if you’ll go through Google’s financial statements, you’ll find that most of the revenue generated by the search engine giant is solely through advertisements. Surprising. Isn’t it?
I downloaded the 10Q document uploaded by Google in fulfillment of its obligation to furnish quarterly financial information to United States Securities and Exchange Commission(SEC) under section 13 of the securities exchange Act, 1934. The most interesting excerpts in the whole document are quoted below –
[su_quote]Google generates revenues primarily by delivering relevant, cost-effective online advertising. Businesses use our AdWords program and AdSense program to promote their products and services with advertising on both Google-owned properties and publishers’ sites across the web.[/su_quote]
[su_quote]We generate a significant portion of our revenues from advertising, and a reduction in spending by or loss of advertisers could seriously harm our business. We generated 91% of Google revenues from our advertisers in 2013 and 90% in the six months ended June 30, 2014.[/su_quote]
The following table shows the revenue generated till June 30 this year, as reported by the search giant in this document –
[table id=2 /]
- Google network members’ websites include non Google properties participating in AdSense for search, AdSense for content and admob business (The Google ads that appear on blogs, websites, apps and other user-generated media sources fall into this category)
- Google websites include Google owned and operated properties across different geographies and form factors like Google search, YouTube, Maps and so on (The sponsored ads that you see on Google search, YouTube and other Google owned assets fall into this category)
- Other sources include – digital contents such as apps, music and movies & hardware such as Nexus mobiles, chromecast, Google glass, Google TV, etc…
Can You Feel Your Worth?
The blue segment in the figure above directly shows how big business you all have made for Google in just first six months of the year. Be proud to be a Google AdSense publisher because somewhere in this blue segment you’ve probably contributed too, no matter how small 😉