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“Half of Google's revenue comes from selling text-based ads that are placed near search results and are related to the topic of the search. Another half of its revenues come from licensing its search technology to companies like Yahoo.” quote by Eric Schmidt
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“Half of Google's revenue comes from selling text-based ads that are placed near search results and are related to the topic of the search. Another half of its revenues come from licensing its search technology to companies like Yahoo.”

Eric Schmidt

About This Quote

Source Corporate Report: Alphabet Inc. Financial Statements, 2020

Google earns half its money from text ads tied to search queries and the other half by licensing its search engine to partners like Yahoo.

In simple terms: Google makes money from ads and licensing its search tech.

Key Takeaway

Focus on diversifying revenue streams.

Themes

business technology advertising

Mood

analytical strategic

Type

informational financial

When to use this quote

  • marketing strategy
  • partner negotiations
  • revenue diversification
  • financial planning

Key Concepts

monetization platform licensing

Questions to Reflect On

  • How can Google reduce dependence on ad income?
  • What new licensing opportunities exist?
A Different Perspective

Reliance on ad revenue can be vulnerable to market shifts.

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