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

advertise their business

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

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

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 $0.01 to $50 or may be more

Insurance and loans advertisers are paying the highest money for ads on Google