Tomahawk, WI 11/13/2013 (BasicsMedia) – Google Inc. (NASDAQ:GOOG) is trying to be everywhere lately. It’s improving its revenue from search ads and also getting its hands on the hardware and music streaming business. So is the internet search engine giant making real money out of these? A recent study has revealed that Google has raided the coffers of the traditional media globally, more so in the U.S.

Once seen as an underdog in the ad revenue earnings, Google now leads newspapers and magazines combined revenue by more than $11 billion. Yes, of course, a lot has changed in the fortunes of print media as readership and ad revenue decline. However, such a huge gain for Google over such a short span is amazing. In 2004 the U.S. traditional media comprising newspapers and magazines generated about $71 billion in revenue. At the time, Google earned nearly $3 billion from its website. Since then, the search engine giant has been steadily increasing its revenue and peaked in 2012, gaining $11 billion in revenue above the magazines and newspapers ad revenue. This astonishing figure has served to boost confidence in the future of the tech giant. Google is brutally charging in ad revenue and estimates are putting its ad revenue earning this year at $60 billion.

Boosting Other Revenue Frontiers

Buoyed by huge dollars in revenue, Google is not contended by what it already generates and seeks more value for its shareholders. The company is gradually penetrating the hardware market. Its acquisition of Motorola is starting to make sense as the uptake of Motor X increases. Google’s smartphone Nexus 5 is also gaining popularity and the latest report shows that the company has outsold the device. Yet another innovative hardware device is expected sometimes next year and that is Google Glass, a smart computer that will also stream music for the users. To expand its revenue collection, Google is making spirited foray into China, the world’s second largest market, and possible the next big market for tech companies. Google is reported as courting China’s smartphone maker Xiaomi for possible joint venture in smartphone business for the Chinese market. However, no official communication has come from Google or its potential partner to confirm this possible partnership.

In order to boost its ad revenue streak, Google needs to prove to its advertisers about the efficacy of its ads. For a long time the search engine giant has relied on its own in-house analysis, however, many advertisers felt that a third-party ad results measuring tool was more reliable. In this regard, Google has partnered with Nielsen to monitor and provide measurable results for ads placed on Google website. This is not only expected to boost advertiser confidence, but also increase its ad revenue collection, particularly on the video sharing platform YouTube. Ad revenue earning from YouTube is expected to peak following this monitor deal with Nielsen. Currently the video sharing platform generates 41.3 billion in ad revenue at a time when the total video ad revenue in the U.S. is $4.3 billion, and is expected to go up in the near term.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.