BUSINESS MODEL OF ALPHABET.
                     BUSINESS MODEL OF 
ALPHABET
INTRODUCTION
• Over the years, Google's business model has evolved. While ads 
remains its cash cow, in other ways Google has diversified profits. 
• Whilst Google generated 90% of its advertisement revenues in 2015, 
in 2017, Google's publicity revenues amounted to 86%. Additional 
sales rose from about 10% in 2015 to almost 13% in 2017.
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Source: twitter
EVOLUTION OF 
MONETIZATION STRATEGY
• Over the years, the approach of Google's monetization has shifted. 
While Google continues to follow its main commercial advertising 
model. Alphabet has been diversifying sales in a variety of ways, as is 
how Google has rebranded itself. 
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Source: www.thinkwithgoogle.com
EVOLUTION OF 
PROFITABILITY
• After its IPO, Google has become a highly successful business. 
Indeed, when investors saw Google find a highly successful business, 
it expanded on the speed of light and was expected to dominate 
digital space. 
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Source: stablewp.com
PRE-BUSINESS MODEL
• From the very beginning the strategy has been set up based on the 
"data exhaust" values produced in each search – behavioural data for 
queries such as the formatting of the search, pronunciation, punching, 
click patterns and position.
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Source: stablewp.com
PERFORMANCE BASE 
OFFERING 
• A performance base offering was the business model breakthrough 
that drived this whole change in ads: ricing was focused on a "click 
rate"—the probability of a customer pursuing advertisement. 
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YOUTUBE, NETWORK, AND 
DISPLAY
• Since its 2004 IPO, in 2006, Google purchased YouTube, followed by 
DoubleClick (the ad network), with additional acquisitions and assets 
and ad forms in the learning circle, in 2008.
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Source: www.androidauthority.com
GOOGLE APPS
• After Google started to extend its reach outside of the core search 
offering as early as 2003 in their Adsense program, the sheer power 
of the pay-what-works model massively accelerated adoption and 
Google’s growth rate took off. 
• The opportunity to gather information about the usage of all Google 
apps is originally free under the same slogan: Gmail and Gdocs. 
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Source: www.lutherchips.com
CLOUD SERVICES
• Cloud computing were introduced as App Engine, a hub in Google's 
management data centres for the creation and hosting of mobile 
apps. 
• It also provides cloud computing services that operate on the same 
facilities as Goods internally uses for its end-user products, such as 
Google Search, Gmail and YouTube, directly to individuals and 
companies such as Google Cloud Platform (GCP). 
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Source: techgig.com
DEVICES
• The company has made large-scale gadget investments, including 
the Nest Smart House Sensor and the new Fitbit fitness devices, 
using its huge cash pile.
• Google has launched Google Home successfully to deal with 
Amazon's Echo and other smart home products.
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Source: geomarketing.com
HOW GOOGLE (ALPHABET) 
MAKES MONEY?
• Alphabet Inc. (GOOGLE) makes money through the Google Search 
engine, YouTube, Google Play, Google Cloud, Chrome browser, and 
Android mobile operating system. 
• In addition, the company has made considerable investments in the 
Stadia cloud gaming system, Waymo self-driving vehicles, and other 
technology initiatives
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Source: www.investopedia.com