> Google's only product is advertising,
Google's main product is user attention, which they sell to advertisers in the form of advertising.
Right now, they farm this attention mostly through web search, but hone it through data they collect with other venues, such as e.g. location and other data collected from Android handsets, the vast tentacles of Google Analytics, Google DNS, G-Suite (GMail, G Docs, G Drive, ...) etc.
AFAIK, G-Suite for business is actually making money (a round-off error compared to advertising, but still, a profitable business), and the various cloud storage and compute offering are actually making money that is not a round-off error (though still dwarfed by advertising).
Also, they DO need to make better advertising (and farm better attention), because they are in many ways a "natural monopoly" - they're the monopoly because they are the best in many ways, mostly not because of network effects or anti-competitive behaviour (which they have practiced at times, especially with YouTube, but not nearly to the extent practiced by any other player of this size).