Answer to Question #109398 in Economics of Enterprise for sheikha

Question

Explain how Google generates revenue and exploits innovation in digital technology to identify future revenue growth. You should also consider the risk factors for future revenue generation.

Answer 1

It generates revenue from advertisements and search engines. It exploits innovation by use of pay per click method which is used with advertisements to direct traffic to a website. Those advertising pay Google when their ad has been clicked. The future of Google is that it has plans to introduce radio ads which are audio ads placed in radio programs. Google generates its income when users click to play the video ads. Some risk factors with the Google future are ad Blok which affects the future of Google and also index spammers are some examples of factors that can affect Google future.