Currently, Alphabet, Google’s parent company, has made more than 250 acquisitions. This network of companies has allowed the firm not only to strengthen its core business, but also to explore new market opportunities. Examples of these efforts include the successful development of the Android operating system, its growing offering of cloud services through Google Cloud, and its foray into the virtual reality industry.
Much of this success is due to the prominence that Google has achieved in digital marketing and advertising, which represent more than 80% of its total turnover and is the reason why the company is currently facing controversy with the Department of United States Justice.
And this domain has not dropped below 90% since 2014, consolidating itself as the top choice for users on mobile, desktop and tablet searches.
Bing, the closest competitor, occupies second place with a very low share, but is historically the biggest competitor to Google’s engine. Other search engines include Yandex, with a global share of 1.95% and a dominant position in Russia, where it controls more than 68% of the market.
Yahoo continues to decline in relevance, with 1.32% share, and Baidu, the leader in China, has only 0.79% globally due to its primarily local focus. Finally, DuckDuckGo, known for its emphasis on privacy, occupies 0.64% of the global market, but remains popular among niche users who prioritize the protection of personal data, all according to data from Statista.
If the DOJ initiative can be effective, the changes could be seen especially in the online advertising sector.
According to data from eMarketer, Google generates more than 80% of its income through online advertising, thanks to its wide reach and segmentation capacity. Its search engine, combined with Google Ads, allows businesses to target highly targeted ads to a global audience.
This model has established the company as the preferred platform for paid search campaigns, absorbing the majority of advertising spending in this category.
In 2022, the company generated $224.47 billion in advertising revenue. In 2023, this figure increased to 237,855 million dollars, representing an annual increase of 6%. For the first quarter of 2024, search advertising revenue represented 57.3% of Alphabet’s total revenue, equivalent to $46.2 billion in one period, according to data from the technology company.
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