Google, which has become a giant, still relies heavily on advertising revenue
Google (Weibo) needs to diversify. After 14 years of development, the company still has 95% of its revenue from online advertising, and most of it comes from search. This is not because of a lack of experimentation. Over the years, Google has launched a number of new products outside the search, although many have important strategic significance, but most of them do not contribute too much profit.
Today, Google has even started betting on hardware. It has also become the largest and even most risky transition in Google's history. Can Google succeed? Is it already struggling to find out? In order to better understand the status quo, we decided to review all of Google's Non-core business, and rated:
Smart phone: A-
Android has become one of Google's killer
Android has become one of Google's key businesses, making Android the world's leading smartphone platform in less than 5 years, after spending $50 million on a basic framework for a smartphone operating system in 2005 years.
The only reason to get a--rather than a--is that the iphone contributed more than 24 billion dollars to Apple in the last quarter, and Android didn't make much money for Google because it was offered to major manufacturers for free. Google says it generates about 1 billion dollars a year through mobile advertising, but many come from other platforms, including the iphone.
Strategically, this may be an overall picture. Google's main goal is to avoid rivals such as Apple from blocking Google's search through Android's success. However, after the acquisition of Motorola (micro-blog) mobile, Google may actively deploy income-generating plans.
Web browser: A
Google Chrome has overtaken Firefox to become the world's second-largest browser
Chrome is similar to Android. In this market, Google is also a rookie in the identity of the march into a mature market, and quickly changed the pattern. In just over 3 years, Chrome overtook Firefox to become the world's second-most popular browser. The size of chrome still lags behind IE, but it is installed on hundreds of millions of new PCs each year.
As with Android, Chrome is also a bigger target – making sure that Third-party browsers don't block Google services. But the browser does provide a fast, stable network experience and attracts users to stay on the web for longer.
Chrome is also a free product, but no business uses browsers to make money, so Google has no reason to do so.
Netbook: D
Chromebook's idea of being too advanced becomes a major obstacle to promotion
Another of Chrome's affiliate programs is the Chrome OS, a browser-based operating system that is designed to overcome some problems with windows in the netbook market.
Chromebook is cheap, starts fast, and it's easy to upgrade, Patch, and all the software runs through the network. However, the system supports very little hardware, and the number of applications is far less than that of Windows. In addition, the netbook market has been hit by the rise of the ipad.
All in all, it seemed like a good experiment in 2009 when netbooks were at its zenith, but the environment has changed.
Show ads: A
Google's main source of revenue is still advertising
Because it attracts advertisers to buy billions of of dollars of search ads each year, it seems easy for Google to carry out the business. However, it did not really make a difference in the display of the advertising market until the DoubleClick was acquired in 2007.
5 years later, Google has built one of the most widely displayed advertising networks, with revenues expected to reach $5 billion this year.
Video: B
YouTube, the world's largest video site, is still not profitable
YouTube is a risky acquisition for Google, and is likely to be $ billions of a year for copyright infringement.
But Google's performance is very good, in the copyright party's request to remove the infringing content, they successfully dissolved the legal dispute. YouTube has now become the hottest video site. In recent months, Google has also recruited a large number of content producers to help them create exclusive programs and create many channels on YouTube rather than simply offering random video combinations.
So why did you just give a B? Because despite a lot of viewers, YouTube has very little revenue--the 2012 revenue is expected to be no more than $1.6 billion trillion.
Social networks: C
Google + is growing fast but far from Facebook
Last summer, Google launched a much-anticipated Facebook challenge.
The service has attracted 90 million registered users, but it is unclear how many active users there are. A lot of people just log in to Gmail and other Google services and don't really use Google +.
Google may argue that it doesn't matter, because Google + was not meant to rob Facebook's users. Instead, it is just a way for Google to learn about the social relationships of its users and to improve other products. Facebook and Twitter clearly do not want to provide Google with all the information, so Google decided to do it alone.
But the performance of the project is not very satisfactory. Earlier this year, when Google highlighted its content in Google's search, many people thought it would cause users to switch to Microsoft's Bing.
In addition, it is widely believed that ordinary users do not use this service, Google + most of the interaction is from the technology industry practitioners and Google employees, your parents and old students do not.
In short, Google + is by far the best social project ever, much better than previously failed wave and buzz. But it is too early to say whether the service will be the lifeline of Google's life-saving straw in social times.
Consumer Electronics: F
Google TV's performance has been less than ideal
Google has yet to develop consumer electronics products. But it does provide software to other companies to help them produce such devices. Unfortunately, these products are now suffering a fiasco.
The first edition of Google TV's performance was so bad that one of Google's partners, Logitech, returned more than it sold in the first quarter of 2011. Logitech's CEO even referred to it as an "expensive mistake". The second edition seems to be a lot better, but the International Consumer Electronics Show (CES) does not appear to have a lot of products on display, as Google has promised.
Android tablets are also poorly sold, with the exception of the Kindle Fire, which employs Amazon's custom browsers, app stores and apps, and has nothing to do with Google services.
Enterprise Application: B-
Google Docs is one of Google's explorations in the corporate marketplace
This is a legitimate business for Google. Bringing business applications such as e-mail and document collaboration into the cloud brings a lot of benefits, and Google is one of the early explorers in the field.
But Google does not seem to devote 100% of its energy to the market. Individual Google apps, such as spreadsheets, lack some of the key features, which leads to a lot of users still without Microsoft Office. Today, Microsoft has launched a counterattack with Office 365 cloud computing solutions. It will be a fierce battle, but Google has given Microsoft too long a response time.
In addition, from the income point of view, Google Apps also mediocre performance, annual income of less than 1 billion dollars. But don't get me wrong, we like Gmail and apps, and we're satisfied with these services, we just think it could have done better.
Local business: C
Google Group to serve Google offers
On the one hand, local business is now a lot of Google search results, which seems reasonable, after all, this can provide users with more relevant search results, especially in mobile devices. But companies such as Yelp say Google's move is suspected of unfair competition.
In addition, Google also uses the mobile phone's Google Wallet services to expand the entity payment area, but the service currently only supports two mobile phones, and security vulnerabilities are frequent. Google is also trying to launch a similar service with Groupon in the group buying market. Google has spent 151 million of dollars on buying restaurant guide services Zagat and is expected to incorporate them into local business.
Some day, users may use Google to buy products directly from local businesses. But like the social business, the project is still in progress.
Conclusion
Google has mixed performance in non-core areas. On the one hand, the company has revamped its services after acquiring other companies and quickly adapted to market developments, such as YouTube, Android and DoubleClick.
On the other hand, if it is Google's self-developed projects, the performance does not seem to be satisfactory, although Chrome browser performance is impressive, but the localization and social services have not seen a turnaround.
In addition to mobile phones, Google in other areas of consumer electronics performance is also bad, for the upcoming hardware business, this does not seem auspicious. (