Ever wondered how Google made so much money and became one of the richest companies in the world? There are many people who wonder how Google makes great money while they are providing all the services like Gmail, Orkut, YouTube etc for free to us.
Well, I want you to compare this with your cable connection (non-paid channels). How do they make money if you are watching all entertainment programs without paying anything to them? Yes, you are 100% correct – Advertisements. Let us see how Google does the advertisements and how it earns from them.
1. Google Adsense
This is a Google advertisement program. It takes ads from different sources and displays them on their and other websites. The bloggers and website owners are the most beneficiaries of this program along with Google (you can see some ads in this blog’s right corner). Every time a visitor clicks on those ads, google and the blog owners make money.
The basis of successful revenue from this program is the number of games. Not everyone clicks the ads. But, they have a generic equation on how many visitors click on those ads, get registered, and buy from them.
If you own a website or a blog, you can apply for Google adsense by clicking here.
2. Sponsored Results
Every time when you do a search on google, you can also find couple of extra relevant links either on top or on the right side of your actual results. Those are sponsored results. Google charges money from websites owners and display their (relevant) results at those places. This gives better chances of visitors to click on those links and hence more profit for the web owners.
So, how much google earns from Adwords?
Google allows all the advertisers to put their adverts with relevant keywords. It then analyses all the quotes, the popularity/competition for those keywords and then gives a quote.
3. Google Image Searches
As discussed above, google image searches also display sponsored image links with your actual image results. Every time you go and visit those links, google makes money from it.
4. Gmail & Youtube
Gmail is the most popular application from Google. You can see ad links in your email box every time you are using it. Every time you click on these links, google gets paid. These sponsored ads are relevant to the keywords contained in your emails/messages.
You can see some sponsored banner links every time you are using these websites. Clicks give Money. Registering and Buying through these links gives even more money.
5. Android
Well, this looks like a game. Google may give you an Android operating system for free. But they sell some licenses of the Android applications and make money from them. Applications like Google Search, Android Market, Gmail, etc come as GAPPS (Google Applications).
Google is very much interested in the Android Market. They make money from all the apps sold through the market. Here is the link for the Android Wiki Page
6. Google Cloud
Cloud is an emerging business and Google is a pioneer in that. Google offers various enterprise cloud services to companies and makes millions of dollars out of it.