Monday 22 October 2012

How does Google make money?

             Google.com makes most of its money from paid advertising. When you do a search on Google.com you'll often see listings at the very top and on the right side. Google.com charges money for those listings. Every time someone clicks on those links, they company that is listed gets charged. The amount varies depending on the competition for that particular key phrase that was searched. Key phrases can be as low as five cents per click, whereas others can be ten dollars or more per click.

           Google also runs these ads on websites that participate in Google's AdSense program. The advertisers pay Google for each click, Google keeps some of the money, and passes the rest of the money to the websites that ran the ads.

           Google also places ads on other sites that they run, like YouTube and Gmail.


           Today whenever you are trying to search for something, the first thing that comes to mind is ‘Google it’. Google has provided Internet users with loads of valuable products and facilities. The most popular of these are the following.
  • Google Search Engine
  • Gmail
  • Youtube
  • Orkut
  • Google Adsense
  • Google Adwords
  • Blogger
  • Google Maps
  • Google Earth
  • Google News
  • Google Analytics
  • Android (operating system)
1. Sponsored Results: These are the results that appear on the right hand corner of our screens after we execute a search on Google. Websites that appear on the Sponsored Results tab have an agreement with Google where they pay Google for showing their website on searches for specific websites. For example, if we are searching for a Samsung mobile phone, we see websites selling Samsung mobile phones in the Sponsored links section. Google earns some money when we click on any of these links. The question is how much money does Google earn from this? Google Adwords allow all potential advertisers to put up their adverts, specifying the keywords. After assessing the advert, Google will quote a price for your advert.

2. Google assense: This is an advertising program which was started by Google where every one of Google users can make money online. Website owners and bloggers are the ones who gain the most from this program. It depends on the amount of traffic that your website or blog generates. Advertisers pay Google some amount of money, every time someone clicks on their link as it helps them to increase their various businesses. Google also pays website and blog owners some revenue for every click on their Ad sense which is present on your blog/website. Google keeps part of the revenue that they earn in the process and pay remaining amount to the publishers.

3. Google Image search: Google also shows sponsored results for images under Sponsored Links above the rest of the results. These are also a means to earn a lot of money for Google.

4. Gmail: When we sign in to our mail accounts on Gmail which is probably the most popular at this point in time, we are shown sponsored links on our accounts. And these links are always relevant to the keywords of the mails that we receive.

5. Orkut: Google displays text and banner ads on Orkut profiles and pages.

6. Android: Google makes money (and justifies giving away the OS) by licensing the Google Apps that come on most Android phones (but not all). Apps like Gmail, the Android Market, Google Search, and others come in something called GAPPS. The Market is really where Google is interested. Sure, the other GAPPS add value to the phone (hence why carriers license their inclusion on Android-powered phones), but Google is making money with every app sold through the Market. Even free apps make Google money. Developers have to pay to have an account to list their apps under. Even ad-sponsored apps are likely using Google Mobile Ads, so Google’s getting revenue from that source as well.

7: Youtube: Google displays text and banner ads on youtube videos and sidebar of YouTube pages.

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