How does Google make money?
For many of us who are already using Google Adsense and other Google enterprise solution might be aware about this interesting question. But for a newbie or common internet users its question of great importance and interesting.
How does Google make money ?
How much money does Google make?
I had some research with the online data available on the web with reputed websites and come to the below figures on how does Google make money. So let us have a look on these strategy on how does Google make money.
As per the reports available, the approx revenue generated by Google in a quarter is around 15-17 billions of the total gross revenue. For exact figures you can refer to their official page for investors. So if we start to dig into details about the break up of these figures, all most all of its earning was from advertising, i.e. from both the Google’ own sites and on its network partner sites which is used for Google Adsense network. Google Adsense is a publisher network for website owners and webmasters to get partnered with Google for Ads from Google ads inventory. These ads are displayed on Publishers websites and a part of the revenue generated through these ads are shared between the publisher and Google Adsense. This is how Google makes money from Google Adsense network.
The other Advertising platform used by Google is the Google Adwords. You might have used Google search engines about number of time. When the search results are displayed, there are some specific Text ads shown on the right side of the search results. These ads are shown by Google Adwords based on the search keyword or phrase you are looking for. These ads are very much relevant for the topic you are looking for. And since these text ads are relevant to your requirement, you happen to click on these ads and land the 3rd party websites. These ads are shown based on cost per click bases. means whenever you click on the ads, Google get a fair amount of revenue from these ad clicks. So this is how Google makes money using the advertising platform. So you can see, approx. 84% of the revenue comes from the Google advertising network.
How does Google make money from Enterprise solution?
Apart from the Google advertising platform, there are many Google enterprises solution provided by Google. It provides other services like Google maps, cloud computing, Google drives, Google docs,email services and social network. What is think is, when you run a brand like Google, you have to have world class products which not only helps to retain your present base of customers, but also helps to gain more users and customers. When you have more users into your system, you can gather more vital information about the users which i turn helps to support for your other paid services.
Google is also making a good returns from its video sharing network i.e. Youtube. They are using their ad network to display banner, text and video ads on Youtube platform which again helps to en-cash a very big revenue for the company.
As well all know, Google dominates the mobile market, licensing out its Android operating system for free. But its making a huge profit from the ventured application like the search engine which drives huge traffic, display ads and not to forget the percentage of sale from its play store for android apps.
These where some of the ways How does Google make money or Google earns money. If you like to add some comment do post it in the below section. If you like the post do share it with the world.