Published March 20, 2013

How Will Google Fiber Affect Google’s Revenue?

By gabriel.gervelis

Many people in the tech and social media industries say that Google is reaching maximum market share and must seek out new ways of increasing their value. A leader in the search engine world, Google has also introduced many other successful tools for ad management, keyword research, analytics, email, business apps, social media, and more. Therefore it’s difficult to guess what future tools and services Google will roll out. As Google’s competitors grow larger and more successful, the key to Google’s continued success will lie in offering faster access to their existing services.

Google Fiber Launch in Kansas City

Google has recently announced Google Fiber, a high-speed broadband internet solution that delivers internet speeds 100x faster than other broadband providers, like Comcast, at affordable prices.

Currently Google Fiber is being tested in Kansas City, MO and Kansas City, KS with upcoming expansion to other parts of Missouri and the Midwest, and Google fans hope Fiber will expand nation-wide soon.

More International Internet Connectivity with Google Fiber

According to Google Public Data, only 35% of the world’s population has internet access. Only 78% of the US population is connected to the internet, however some countries fall as low as 4% (like Afghanistan). Services like Google Fiber provide an opportunity not only for more Americans to have affordable high-speed broadband access, but also for people who live in developing nations that are quickly becoming more technologically advanced.

Since 1990, the United States, Canada, countries in Western Europe, Japan, and Australia have dominated the internet market. But now, developing countries like Jamaica, Egypt, Bangladesh, and Armenia are seeing a steady climb in internet access. Bridging the technology gap between wealthy countries and developing nations through inexpensive and reliable broadband access will soon change the online world and increase the demand for Google services. And as more and more of these developing nations enter the tech world, Google will see a steady increase in users, which ultimately means more ad revenue.

How Google Fiber Increases Google’s Ad Revenue

Over the long run, services like Google Fiber will provide internet at much faster speeds than we have today, and will subsequently load web pages much faster. As more pages are seen, online searchers will see more and more ads in a shorter amount of time. This equals more ad revenue for Google and other search engines.


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