In this article, I defined Eight online revenue models along with how they are calculated, so they could be applied to new revenue models of startups.
In this chart of the day, we can see a comparison of the four / five dominant digital brands sometimes known as GAFA of FAMGA or even the frightful five.
Of these five digital businesses, it's no surprise to see that Alphabet (Google companies including their research and development) and Facebook are dominated by ad sales. Apple sales are dominated by product sales with iPhone much more important that Mac laptops and iPad. Data services like iTunes and storage are still relatively small (11%).
Amazon is different to the other four in that it focuses on online retail, yet this is less than 75% of sales showing its success in diversification to media (18%) and Amazon Web Services (9%). Microsoft has the most diverse revenue from both software, hardware and media. With 22% from Windows Server and Azure, Microsoft is successful in B2B services also.
By Dave Chaffey
Digital strategist Dr Dave Chaffey is co-founder and Content Director of online marketing training platform and publisher Smart Insights. 'Dr Dave' is known for his strategic, but practical, data-driven advice. He has trained and consulted with many business of all sizes in most sectors. These include large international B2B and B2C brands including 3M, BP, Barclaycard, Dell, Confused.com, HSBC, Mercedes-Benz, Microsoft, M&G Investment, Rentokil Initial, O2, Royal Canin (Mars Group) plus many smaller businesses. Dave is editor of the templates, guides and courses in our digital marketing resource library used by our Business members to plan, manage and optimize their marketing. Free members can access our free sample templates here. Dave is also keynote speaker, trainer and consultant who is author of 5 bestselling books on digital marketing including Digital Marketing Excellence and Digital Marketing: Strategy, Implementation and Practice. In 2004 he was recognised by the Chartered Institute of Marketing as one of 50 marketing ‘gurus’ worldwide who have helped shape the future of marketing. My personal site, DaveChaffey.com, lists my latest Digital marketing and E-commerce books and support materials including a digital marketing glossary. Please connect on LinkedIn to receive updates or ask me a question.
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