How does Google Make Money?

February 2, 2020

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Google posted earnings of $6.2 billion dollar in the second quarter of 2019 and the rise is expected in the latest quarter too. Everybody uses Google for finding information in the web world. It is the biggest search engine working aggressively to deliver the best quality information to its users. They strive for giving most relevant google search results and also for the fastest possible results. Their algorithm is stronger than most of the competitors and is possible to crack only by the geniuses who have to work towards attaining a fine balance between user-friendliness and search engine friendliness. As an end user, no one has paid even a penny for searching information through Google. So, how does Google make money to post such huge profits? It certainly is worth finding out.

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Answer to ‘How does Google Make Money? Is advertising?

The simplest logic that works in such scenario where the service provider and the user are not exchanging any financial transaction is – there is someone else paying. That someone else in the case of Google search engine is advertisers. The search engine has become the biggest platform for attracting traffic for the websites. Everyone wants to be in the top position in search engine slots and they pay to advertising services such as – Google Ads, Google Adsense, etc. The effort to attract organic traffic is certainly there, but the role of advertising cannot be denied in attracting the large number of visitors. Thus, advertising products of Google as the ones mentioned in this section are the ways this search engine generates revenue.

Google Ads

Many people confront that Google Ads do not work, but there is no denying the fact that Google charges money for this product only because people use it with full enthusiasm. The extent of spend on Google Ads has reported to be as high as $50 million a year by the advertisers. So, the critics have to work on their offering too, before jumping upon giving negative report for this channel.

To use Google Ads, the account holder submits ads to the search engine. The ads contain a list of keywords which the buyer is most likely to use while searching for the product or service. The ad is given the side bar space in lieu of money the advertisers pay. When a user clicks on the ad and visits the website, the advertiser pays to Google. The best part of this product is that the advertiser gets the as spot right at the result page that Google offers to the search engine users.

Google AdSense

AdSense is another display advertising tool available with Google. It is different from Ads in the sense that the user has to post the ad on the website and not the SERP. This posting is done by Webmaster which actually places the ad in the most relevant website that is likely to get the visitors the most. Thus, the non-Google website becomes the target location for the ads posted through Google AdSense. When any person clicks on the ads displayed in the websites visited, a portion of revenue generated from this click goes to Google. Thus, advertisers bid for the cost per click to get the high spot. This portion summed up to approx. 40 billion dollars in a quarter of the year 2017, such is the mammoth nature of the way Google makes money from AdSense.

Google AdWords

Google AdWords is another product similar to Ads with only difference that the ads will be displayed on the Google sites and mobile applications such as YouTube, Gmail, Google Play, Google Maps, etc. The number of people visiting these sites is certainly going to be quite higher as compared to a non-Google site. Thus, the revenue likely to be generated by ads placed on these websites is going to be quite higher in comparison. The search query containing the keywords placed in the ads result in click which in turn creates revenue for Google.

No wonder the advertisers agree to bid for the ads placement. Mostly, the second highest bidder gets the slot for ads in the Google advertisement sites. The advertisers have to outbid each other to be visible on Google sites, but smartly.

There is a whole lot of research involved in selecting the keywords based ad for this tool. The bidders bid for the keywords too. Google earned anywhere between 50 cents to a few dollars per click.

Thus, space selling is one of the prime resources of revenue that Google uses for making billions of dollars every year. Right from the stage of visiting Google and posting a search query, users are generating money making opportunities for this search engine company.

Visibility on this search engine is a big thing and Google charges for the exposure that a business gets by appearing in the top slots of the search page.

YouTube

As a matter of fact YouTube is the one of the topmost successful google product and peoples earn money rapidly when comparing other platforms. YouTube gives the lot of opportunities to people earn money naturally. The only thing you can do here is starting a channel in your favorite niche and upload quality videos in order to increase audience and earn unlimited big money’s as much you can.

Other sources of revenue of Google

Apart from the ads, Google earns money also from its other products such as Chromecast, Chromebooks, Google Cloud Platform, Play Store, to name a few. Google Glass is an innovative product that is a wearable device which displays information on voice commands. The information is displayed within the user’s range of vision. The company has also invested in a solar power plant in the desert of Mojave.

So, these are a few sources that have helped Google keep going and deliver the enviable quality results both to the end users and the stakeholders.

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