Explain about 1. where does google's revenue come from? 2. where does Microsoft revenue come from?

Explain about

1. where does google's revenue come from?

2. where does Microsoft revenue come from?

Expert Solution

1. Main source of revenue for Google is Advertising- Advertising through Google owned and operated properties such as Google Search, Google Maps etc.

Target ads include-

Pay-Per-Impression (PPI) - which charges advertisers based on how many views the ads generate, usually in increments of 1,000 "impressions."
Pay-Per-Click (PPC) charges advertisers for every click i.e. each time a user clicks on the ad, Google charges money. Advertisers specify a "bid," i.e. how much they are willing to pay per click or view, and engage in an instant "auction" to try to have their own ads appear on a website or app.

Other revenue streams include selling of software and hardware i.e. digital content products and apps sold through Play store - Google’s Play digital content distribution platform. Hardware includes sale of Chromecast devices and smartphones.

In fact in 2019, Google accounted for majority of parent Alphabet's revenue.

2. Microsoft being world's leading technology company, it offers wide array of software products, services, solutions and devices. Revenue generating streams are as mentioned below-

Sale of software products like OS for various devices, phones, Business solutions applications, Video games tools, Desktop and server management tools, Servers, accessories etc.
Sale of hardware products like Computers, Tablets, Phones, Gaming consoles, smart devices, accessories etc.
Cloud-based solutions - selling of devices that integrate with cloud-based services
Training/certification services
Online advertising
Office Consumer applications like MS Office subscriptions for Outlook, Office 365, One Drive, Skype etc.
Business solutions like Dynamic ERP products, CRM products etc.
Gaming devices like Xbox Hardware and Xbox Live.

ekkarill92 answered 1 year ago

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