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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
Need to Learn More
• Please Keep in Touch
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