Our day on the web starts with Google. It is not an over statement to say that Google is omni present. So, I always have a doubt as to where does Google get its money from ?

Pose a question for yourself. What business Google is in and the answer you’ll most likely get is “search.” And you would be wrong. Google is, first and foremost, an advertising company.

Google revenue split

A full 97 percent (I could find the 2009 report only) of its revenue comes from advertising on its various properties, including YouTube, plus partner sites through its AdSense product.

Sure, Google has Android and Chrome OS and everything else, but it doesn’t make money from them — they’re just there to get people to watch more ads. Think of them as indirect sources for income.

So, to increase its revenues all that Google try doing is to attain monopoly by various means.

For instance, Google pays Mozilla for having Google as its default search engine. Guess the amount… 97% of Mozilla’s income — 97% of $104 million — arrives in the form of royalties for the Firefox search box, and the major share (86%, $85 million) of those royalties are paid by the default search engine: Google. Now that is a huge amount.

Google’s status as the default search engine for the majority of 450 million Firefox users directly translates into millions — and possibly billions — of dollars of revenue. It’s the same story with Opera, which regularly holds an auction for its default search engine: search traffic is worth big bucks.

A version of this article has previously appeared on The Netizens

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