How does Google make Money
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Transcript of How does Google make Money
HOW DOES GOOGLE MAKE MONEY?
Advertising
Over 95% of Google’s revenue is from advertising
Ads that appear when you do a search on Google- major part of this money
Listings at the top and right side of search results- contributions by advertisers- Google charges money for these ads
Where Are the Ads
Listings at the top and right side of search results- contributions by advertisers
Google charges money for these ads
Cost per Click Advertising
Companies use Google AdWords to
1. advertise their business
2. have their results displayed
Advertiser pays Google for each click
32% of the money kept by the Google
68% passed onto the website that ran the ads
Cost per Click Advertising
Advertisers can also join Google’s AdSense program to display their ads on its website
AdWords is responsible for major part of the Google’s advertising revenue
Large number of new websites participate in this program
Google Keywords Tools
You surf the internet
Google learns about your browsing habits
Follows surfing habits through its Analytics and AdSense codes embedded on web pages
Surfing habits from your search are then used to profile your behavior
Tracking helps Google in targeted advertising specifically to your recent internet usage.
Google Keywords Tools
Great search result exposure to their advertisements by getting more people clicking on them
AdWords is contributing around 70% of Google’s advertising revenue- rest from AdSense
Services Google offers exist just to promote the primary business of Google
How much Google charges for a click?
Uses an auction kind of system- price depends upon the competition for that particular keyword or keywords
Many other companies bidding for the same keyword-you will have to pay more or outbid them
May vary from one cent to $50 or may be more Insurance and loans advertisers are paying the
highest money for ads on Google
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