How Does Google Make Money?

Google is well known for its popular search engine, email service, web browser, and various online tools we use daily at work, at home, and on the go. What many don’t think about day-to-day, however, is that all of these services are free. Parent company Alphabet (GOOGL) released Q3 2018 earnings on October 25, 2018. The global tech giant reported revenues of $33.7 billion for the quarter, roughly a 21% increase from $27.77 billion in Q3 2017.

On Dec 11th 2018, Google CEO Sundar Pichai testified before the U.S. Congress in a wide-range hearing about data breaches, misinformation campaigns, and concerns about working with China. The hearing was almost certainly a result of Pichai’s absence in Congress earlier in the year when the chief executive declined to testify alongside Twitter’s Jack Dorsey and Facebook’s Sheryl Sandberg during a Senate Intelligence committee meeting.

Among other concerns, lawmakers raised were to ask about the controversial algorithms powering Google’s search engine. Up to that point, Google had not disclosed how its search engine prioritizes content on the web. In this article, we’re going to break down what we do know about Google, including how it nets billions of dollars each year by offering free services.

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