Google Paid Search: what do they do with all that money?

This week I have spent some time researching Google Adwords and getting myself familiar with the concept of paid search.   I knew Google made a lot of money off of advertising but I had no idea it represented 97% of their total revenue.  I also find it interesting is the words that are the most expensive.  Insurance ... really?  I would have never guessed that if someone were to give me 3 guesses.  I wish I could find where Google discloses how much money they make annually on some of these Adwords.  A simple word can generate billions of dollars a year for Google ... what a concept.

One of the main takeaways I got from doing this research is that it made me realize the things that Google does that are not deemed 'sexy' (Paid Search) is what is funding all of their 'sexy' ideas that get all the media attention.   

The first couple things that come to mind are of course Google Glass and then the drone project and Project Tango to name a few.   More information can be found here in this article. To me this is brilliant by Google.  On CNBC I've heard some critics question Google on why they are wasting money on all this frivolous pie-in-the-sky ideas.  I take what they say with a grain of salt though because these are investors looking at Google's quarterly profits and trying to maximize the profits in the near-term. 

In my eyes, Google has this beautiful cash cow in paid search and they are trying to hit the lottery with another revolutionary idea.   To not rest on what made you successful in the first place is easier said than done for many companies.  I applaud Google for constantly trying to attack the market with new ideas and to step out of their comfort zone and to find the next big thing.