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jsveiga t1_j7di7h9 wrote

So where is all the "they sell our data" revenue?

Is that the "AdMob, AdSense and others"?

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IncomeStatementGuy OP t1_j7djylr wrote

They make more money by serving you personalized ads.

Collecting data about you increases their revenue lines for Search, YouTube and AdSense (ads on websites other than Google and YouTube).

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FIleCorrupted t1_j7ehbzr wrote

There's a big misconception about what is meant by "selling your data". Your data is how they create value, but they don't literally sell excel files of everything you do.

The better the data they collect on you, the more effective they can make their advertisements. For example, maybe a grocery store chain asks google to target a specific ad at users who have been to competitors stores in the past x weeks. They don't sell that customer your data, but they use your data to fulfill the customers request.

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MattWindowz t1_j7ejv1x wrote

Hey, I work in advertising, I can provide a little insight here. When we want to advertise to a specific type of person, Google (and other social media compaines) doesn't give us data and let us target individuals. What we do is select certain keywords, phrases, or interests that we want to target, and their algorithm uses your data to determine if you're the kind of person that we are trying to advertise to. Detailed data is important for Google, because if their data is bad, our ads won't go to the right people, and we won't make sales, so we'll spend our money elsewhere.

Tl;dr advertising revenue is data revenue.

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lykosen11 t1_j7erlx0 wrote

Google do not sell your data. They just don't. Never have.

It's waaaaay more profitable for them to deliver your ads optimized through your data.

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swankpoppy t1_j7e4346 wrote

Question - It says “Youtube”, what does that include? I assume not advertising on the YouTube site?

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lucun t1_j7enx13 wrote

You're better off just reading the earning report yourself than trusting reddit to do that for you. The YouTube $29B revenue in the chart is actually YouTube Ads. The Playstore and Other $29B in the chart includes non-ad revenue from YouTube and many other things.

YouTube is tricky since Alphabet sort of hides YouTube's total revenue and net income.

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swankpoppy t1_j7fe6zt wrote

Thanks! This helps clear it up. I suspected not all of YouTube’s revenue was from ads. YouTube TV, blah blah blah.

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block36_ t1_j7e5sc8 wrote

Either the ads or any of the subscriptions. They probably also take a cut of stream donations and channel memberships.

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swankpoppy t1_j7e952p wrote

Wasn’t sure because there’s a separate bucket for ads but I’m assuming that’s just ads from google, not YouTube? I’m really curious what the distribution of income looks like for YouTube. Is it mostly ads or subscriptions or whatever.

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I__Know__Stuff t1_j7eoslj wrote

The top left category is specifically search advertising. Youtube advertising revenue is in "Youtube".

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swankpoppy t1_j7fe235 wrote

So how does that break out? Are ads the only source of revenue YouTube has? I would have thought there would be direct revenue too, from YouTube TV, things like that. Is that in “other revenue”? I’m asking if anyone has that data. Is 100% of YouTube’s revenue from ads because that’s what this is implying and it seems wrong.

I don’t like how this chart is supposed to show where all the money goes, but has $29B for YouTube, basically the size most companies, as one bucket that’s shown as all ad revenue. I don’t believe that’s true.

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I__Know__Stuff t1_j7feh2m wrote

Another comment said that YouTube's non-advertising revenue is counted under Playstore.

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swankpoppy t1_j7ff62h wrote

Thanks! That makes sense. I’m just surprised they have a bucket that large and don’t elaborate on what “other” means. Seems dodgy.

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