Welcome back! Some great comments on Apple over the last two weeks. Keep up the good work!
Yesterday, I got to try the iPad for the first time, and I must say I was impressed. Great user interface, great screen resolution, light weight, small enough to carry with you, yet large enough to use as a light laptop. As an Apple stockholder, I couldn’t be happier about Apple’s new gadget. By the way, the stock climbed above $242! Go Apple!
Now, let’s understand the business behind Google. As users of Google, it is difficult for many of us to understand Google’s business. Most users aren’t exactly Google’s customers. Most of us simply use Google for free! So, how is it that Google makes money?
If you are in my marketing class, find out what product/service Google provides to its customers and at what price.
If you are in my Intro to Business class, find out Google’s profit margin and return on equity for the last 3 years. How would you interpret these ratios?
Google has many products and services that they offer customers. Most of these products and services are free. Googles revenue comes from its advertisers. Google has hundreds of thousands of advertisers that pay Google. Some of Google’s products and services are Gmail, Youtube, Google Earth, Google News, Google Finance, Google Adsense, Google Maps, Google Enterprise, Google Blog Search, Google Health, Google Patent Search, and many more. Each time you do a search on Google there is a section called “Sponsored Links” every time you click on one of those links, Google charges a certain amount of money to the website. Therefore, getting paid from these sites which makes Google money.
Google charges anywhere from $.01 to $100. There are many factors that determine the fee.
Google is the leading search engine on the face of the internet. They don’t have any product to sell, but they make money by selling traffic to businesses that are online. For an example if you are log on to your my space, or face book account, and you see a side ad that show a nice pair of shoes at a great price, you probably will click on it! For every time someone in cyberspace click on any side or top ad, than Google charges the owners of the website a fee for bringing that traffic to their site! Google has a feature call ad sense, where is free to advertise, however on my search to find out prices for ad on Google they vary depending how big and what locations people want their ads to be showed.
Google gets its money form people who use it for advertising. Companies and businesses will pay Google to advertise their product or service. It allows their name to me well known at no cost to the buyer, and it also gives more business and money to Google.
Google’s profit margin has been going up within the last 2-5 years but went down in January of 2009 but then sky-rocketed from January of 2009 to present, however, I still don’t even know how Google can make a profit if I don’t have to pay for looking stuff up under the Google search engine. I looked deeper within Google’s key statistics and found that Google makes money every time that you, me, or anyone clicks on a link under the “Sponsored links” section which is located mostly on the right hand side of the returned search page and that company providing the product or service is charged a fee by Google, which is the reason why Google has a profit margin (Google and Yahoo/Finance). Google is like Apple they don’t have debt they survive on equity. There are millions of people who have shares within Google and trust Google to turn their investments into bigger investments, Google’s return on equity has risen from 22.69 billion in 2007 to 28.24 billion in 2008 to 36.00 billion in 2009, so Google’s return on equity has been rising (Daily Finance/Google Inc.). The way that I would interpret these ratios for my understanding is looking at Google’s balance sheet for the past 3-5 years, look at their total assets and if their numbers are rising then they are doing well if the numbers are dropping then I wouldn’t invest in that particular company however that is not the only detail, I also look at one other detail, I look at the history of the shares and their price and if the stock market shows a sign of growth I would invest. So to recap everything that I have just talked about in my blog, Google has a profit margin because every time you click on a “sponsored link”, Google is charging that company that provides that product or service, in addition, Google’s return on equity for the past three years has risen from about 23% to 36% which is great and to interpret these ratios would only mean that the stock market is rising which in turn will make our economy rise again, well that is at least how I think things will work out.
Google is a free search engine, and it makes money by charging a fee to the businesses that have links on the website. Google’s return on equity has risen a significant amount over the past few years, currently it is 20.30% according to yahoo finance. Also according to yahoo finance Google’s profit margin is 27.57% this number also has risen a significant amount over the past three years. In ‘07 Google’s net income was $4,203,720 and has risen up to $6,520,448 in ‘09. I would interpret these ratios as Google is a business that has already proven itself numerous times and it is still showing that it will continue to grow.
Google is a free search engine website that allows you to search for anything on the web you may ever dream or think of. According to Google, they make most of their profit off of advertising. In order to do this Google uses a program called Google AdWords that allows them to automatically matches ads to the content of the page on which they appear. Each individual advertiser pays Google either when a user clicks on one of its ads or based on the number of times their ads appear on the Google Network. Some of Google’s products just to name a few include Google Web Search, G mail, Google Earth, and Google Finance.
They dont sell ayny products, everything you use is free. It lets you search anything for free. They make there profit off of advertising. Every time you do a search on Google, you’ve probably noticed that there was a section called “Sponsored Links”. If you click on a link google chargs that website for every click. The charge can cot of to 0.01$ to $100. They sell traffic.
According to Google the Comapny web site “Google provides search and advertising services which together aims to organize and monetize the woldls information.”
Google offers “online tools and plaforms including G-Mail, Maps and You Tube. Most of these are free and are funded by their highly integrated online advertising platforms, AdWords and AdSense.” With AdWords the customer creates ads and chooses key words related to their business and they pay only when the ad is clicked on.” The customer sets their own budget”
“Google has made strong moves into web-based apps space with Jotslot (documents) and 2 web technologies(spread sheet) and Zenter(presentations). ” Google also has” AdManager for inventory management, Analytics which makes measurable improvements to marketing campaigns.”
Google recieves an “activation fee of $5.00 for all accounts with a min. per click of .01 or higher which the account determines and min. cost per thousdand impressions of .05 or higherwhiich the account also determines.”
Google has been doing very good compared to it’s competitors like yahoo and AOL. In December of 2007, Google had a profit margin of 25% and a return on equity of 18%. In 2008, they had a PM of 19% and a ROE of 15%. In 2009, they had a PM of 27% and a ROE of 21% (All percentiles are rounded off and were taken from Yahoo Finance and YCharts.com). AOl only seen a PM of 7.64% and a ROE of 7.32% in December of 2009 so you can really see that Google is the dominant of the industry. What i can interpret from these ratios is that as the company gains more profit, they are able to give back more money to the stockholders. This is because net income is is being divided in both of the equations (profit margin = net income/revenue and return on equity = net income/total owners equity). I would think that the lower the profit margin is, the higher the return on equity would be because there will be more risk involved but since this is part of a technology industry, there is always going to be a high risk and maybe that’s why the ROE doesn’t rise when the PM goes down in this case.
Google’s 2009 Profit Margin of 27% and Return on Equity of 20% (from Yahoo! Finance) is not only a significant increase from previous years, from 25% and 18% respectively, but also much higher than their competitors. Yahoo! Inc, one of Google’s most significant competitors, only boasts a Profit Margin of 9% and a Return on Equity of 5%. This shows that Google is not only much more efficient at generating profits but also distrubutes a much higher amount of those profits to its shareholders. The primary source of income for Google comes in the form of advertisements. Google’s websites are very heavily advertised, and an advertisement spot on Google or one of its websites is highly sought after. Companies spend large amounts of money just to have its name and website located in search results and on other Google websites, like Youtube.
The business behind Google is simple. Google does not make money when every day ordinary users use it. According to the Corporate Information page from Google’s website, “Google generates the majority of its revenue by offering advertisers measurable, cost effective and highly relevant advertising”. It was also said on Google’s website that, “hundreds of thousands of advertisers world wide use ad words to promote their products on their site”. Google has only been in existents for a little more than a decade, but they are making millions of dollars, which is telling many people that they must be doing something right.
Google is a free online search engine that allows its customers to search for everything and anything they could ever want to look up. Google does not make money off the people who use it day to day, however, they make their money off advertising. Companies and various businesses pay Google to advertise for their business. Every time someone clicks on a link under “Sponsored links” which appears on the returned search page, the company that is advertising their product or service must pay Google for that advertising. That is how Google makes its Money off charging other companies for advertising.
Google makes money by advertising. In an article by Ben Tremblay he stated that Google make lot of money of advertising. There is section called “Sponsored Links” and every time somebody clicks on one of those links, Google charge a certain amount of money to the website for the click. The price advertisers pay for a click depends for which they use bidding system. The advertisers select keywords and they pay different amount of money to Google to have their website come up first when somebody searches for the specific thing. As Google bring lots of traffic to different websites, Google makes huge amount of money. That is the reason they are in the cell phone industry, so that they can make money from all the web traffic and make lots og money.
Googles profit margin was last recorded at 27.57%,according to the charts on yahoo finance ,the profit margin seemed to have risen steadily over the past three years, with a slight decline consistently in March, April , and May.The return on equity was recorded at 20.30% on yahoo finance. After reading a couple of blogs from some economists ,Google has a profit margin of 75% which apparently is pretty unheard of .Computers and technology as always are still a tried and true investment ,even in a bad economy.
Google is an amazing company. They can do almost everything for you and have a wider array of services than your normal search engine. If you want to go to the movies and want to watch a trailer go to google. If your looking for a book on a certain subject or time frame you can search it on google. Youtube.com is a huge contributer to google where it links videos and even clothing products from youtube. Now while these services are free to you and me, the items and websites that show up pay to have their product/services posted. Advertisesing is how google makes profits. Almost anyone can advertise their website on google, it has it’s own easy start-up program for site owners. People will always need help when it comes to the internet and google will be there for almost your every need.
Google is a search engine that allows anyone to look up information free of charge. Google makes there own profit through other peoples advertising costs. With millions of advertisments shown daily they are able to make revenue off there website. Google charges anywhere from one cent to one hundred dollars an advertisment. With google being so well known i beleieve they will continue there profit.
Google is a search engine that allows anybody to look up something free of charge. You can look up anything from a word and then it being able to give you a definition, or even an aerial view of the street that you live on. Being this versatile has made it one of the most popular, if not the most popular search engine since being started by two students from Stanford University in 1998. Google makes it money by its advertisers in a section that is called sponsored links. And any of these advertisers who are promoting off googles website is going to pay anywhere from 1 cent to $100 based on the criteria of the advertisement.
Google earns most of its money through google advertisement. whenever you do a search in google. you will see listings at the very top and on the right side. gogole charges money for those listings. ever time you clicks on those links, their companies that are listed get charged. the price advertisers pay for a click depends on a lot of factor. the price can be as low as five cents per click, whereas others can be ten dollars or more per click. Google also provide many products. these include Gmail, iGoogle, Google maps navigation,ect. Google makes money because for the ffirst time the advertiser could see how effective their ass was.
According to Yahoo Finance, Google’s current profit margin is 27.57%, and their Return on Equity is 20.30%. From the chart on Y Charts, Google had a steady profit margin of about 25% from June of 2007 until September of 2008, when it started to decrease. In December it was at it’s lowest of about 6%, until February of 2009 when it came back to about 25%. Since then it has stayed between the 20 and 30 percent range. Google’s Return on Equity in June of 2007, was at about 19% until december 2008 when it went down to 15% only decreased to about 14% until december 2009 when it returned to 18%. Given Google’s current Key Statistics compared to previous years, and the fact that their Net Income in 07 was $4,203,720 and rose to $6,520,448 in 09, shows just how successful they are and gives hope for the rise of the stockmarket and economy.
Google now has join many big major corps. Google has update their data for some of the service that provided by Google app or Google map. T-mobile, AT&T, Verizon, sprint, include apple or Mac and Andriod. Now consumer and researcher say that Andriod has steal ideas and product from Google, but we all not sure about this. Andriod has a challenge service to Google. For Google to provide a great service to all businesses. what they did is provide customers free map, and a lot of the application on their services. But what really great service about Google provider is turn by turn map from Google and direction from Google map as well. most application that customers been try on is demo. To make extra money on their service and as a Google provider is that customer have to purchase the application for one time for the first time. and other thing about Google that make money is to provide those kind of service to other major corps, so every time that they have some one purchase Google map or Google-online they earn commissions and services.
Google is a very innovative and useful company for both consumers and business. The web user on a Google site has many choices such as search, maps, images and video. This company is very profitable and productive, though a user does not have to pay anything for their services. They make there profit threw advertising on the sites. According to the (New York times technology section) Googles quarterly sales are up 23% and it was also stated that they are doing very well compared to their competition. On (yahoo. fiannace) they stated as of today 4/15 the stock was 595.30 and the return on equity was about 20.3 %.
Google makes money through advertisements; it essentially sells the traffic going through its website to the advertisers and is effective because it allows Google and the websites it advertises to see who has clicked what links, and how many times they have clicked them. They get money from the “Sponsored Links” on the top and the sides. They basically have an unlimited number of spots to sell to advertisers because they advertise something different depending on what you search for, while at the same time all of these specifically targeted advertisements actually make for a more efficient search engine. Google’s profit margin for Sept. 2007,2008, and 2009 was 25.29%, 24.29%, and 27.57%, and the return on equity for Sept 2007,2008, and 2009 was 19.15%, 18.59%, and 14.67%. This can be interpreted as almost normal, the economy was bad in 2008 but then we can see how Google’s profit margin improved with the economy in 2009.
The majority of products google offers are free howvever there are other things that they charge for and the main thing is advertisements. Google is paid to place advertisements of various companies on the website itself. Within the many links of google, no matter where you click there are advertisements. Thes ads are the only thing keeping the mass majority of customors the ability to acscess and use google as a free search engine. The profit margin set for 2009 was 27.57% and equity return was 14.67%. The margin moved with the economy which is the ideal situiation. As the economy strengthens, profit margine will increase as the buisness mirrors the economy.
A quote straight from Google’s corporate info on the site its self “As a business, Google generates the majority of its revenue by offering advertisers measurable, cost-effective and highly relevant advertising, so that the ads are useful to the people who see them as well as to the advertisers who run them.” Google lets people use something called Google Adwords. This lets people auction for slots on the search that have to do with keywords.
Daily Common Sense by Ben Tremblay talked about Google’s Business! Advertisement, that’s how Google is making its money. Every time you do a search on Google, you’ve probably noticed that there was a section called “Sponsored Links”.
Every time you click on one of those links, Google charge a certain amount of money to the website for the click. When you go on a website you’ll notice advertising from Google too. Daily Common Sense has ads from Google. Same thing happens here, when you click, Google charge a certain amount of money to the website you clicked on and part of that money is given to the webmaster publishing the ads. This is called AdSense and is an enormous source of income for Google.
The price advertisers pay for a click depends on a lot of factors and this is where Google is playing smart. The price can vary from 0.01$ to 100$ and more.
Product and Services such as:
Google’s AdWordsG allows advertisers to display their advertisements in the Google content network, through either a cost-per-click or cost-per-view scheme.
Google AdSense, allows website owners to display these advertisements on their website, and earn money every time ads are clicked.
Google also provides specialized searches through blogs, catalogs, translator, videos, news items and more.
Goolgle is used by most for free, for seaching the web for information. However it makes a lot of money through advertisements. Google’s profit margin is currently at 27.57%. Also over the past three years it has had a return on equity which is around 20.30%. I would say that these are decent numbers and they help lead to the sucess of Google.
Google offers services for both the consumer and the business parts of the market. For the consumer they offer free services including one of the largest search engines available, Google Earth which provides satallite images of the world , as well as others. Where Google makes their money , however, is from other business’ and the advertisement and virtual office space the company can provide for them.
In the past 3 years Google has done very well despite the latest recession.While I could not find information for 2007 or 2008 I was about to find 2009. In 2009 they boasted a 27.57% profit margin as well as a 20.30% return on equity. Investors have done very well with Google and the stock continues to perform well. Just today they announced a 37% gain in profit for the Q1 of 2010.
So many pepole use google as a search engine to buy and research things. But its free to use. Google makes there money on advertisers that want there product or service shown on the Google page. Google provides us with services such as Gmail, Googlemaps, Google earth,Youtube, Gmail, Google News, Google Finance, ect. Advertisers will want there product or service posted on the page because of the volume of pepole they generate. Google charges advertisers by the veiwing. So every time you click on the link Google gets paid.
Obviously Google is a leading search engine that millions of people use everyday, but their business is very unique. Users do not pay to use Google, but advertisers pay for advertising opportunities.Google uses a program called Google AdWords that allows them to automatically match ads to the content of the page on which they appear. Each individual advertiser pays Google either when a user clicks on one of its ads or based on the number of times their ads appear on the Google Network. They pay anywhere from $.01 or higher depending on advertising time or where the most web traffic is. Google’s unique business is simple and extremely profitable as long as advertisers continue to pay.
Google makes their money through web traffic. More specifically they use advertisements that are on google.com. For every click on these advertisements google will make from one cent to tens of dollars. Another way they use web traffic is through their service called “Adsense”. Adsense is a service that will put appropriate ads on your website that when clicked on will make money, not only for the website but also for google. Now for the past three years google’s profit margins have gone up each year by two percent. This is because their profits continue to grow and yet their costs of sales remain fairly stable because they don’t have to pay much to keep themselves in operation. Google also shows a return on equity that started at nineteen percent, dipped down slightly the next year and is now back up at eighteen percent. This shows that google is making good earnings growth with their investment funds.
Googles Profit margin has been steadily increasing over the past few quarters of last year. Their profit margin in the last quarter of 09 was at almost 30% of their total revenue (yahoo finance) showing that an already successful business is still continuing to grow. Google’s return on equity is also at 20% according to yahoo finance, and again is a number that has been steadily increasing over the past three years. Google is the top competitor in the technological marketplace and is showing no signs of slowing down, at least compared to the two numbers we’ve just seen.
Google is one most used search engine on the internet. That would lead you to wonder how they make money. All they basically do is show us millions of responses to the things we try to investigate. The way they make their money is from advertisements. Large and small corporations/business will pay Google so that they can advertise their products while we search around for other things. They are also in the phone business by having the G1. Basically Google incorporated into your phone.
Google simply makes money in one way. Through advertisements. Millions of companies pay to have their ads on Google pages. They don’t charge their customers and that’s why so many people use that search engine. It’s free,reliable, and effective. Through the years more companies have gone to Google to advertise their products their because it has grown so much.
Google offers many products to their customers for various prices. Most of their products are free of charge, which is why most customers use Google for free. Although Google is a free search engine for it’s customers, it makes money in a few different ways. The major way Google makes money is through advertisement. Companies pay Google to advertise their service or product(s) on google.com.
Google makes their money by advertisement. “Advertisement, that’s how Google is making its money. Every time you do a search on Google, you’ve probably noticed that there was a section called “Sponsored Links”. Every time you click on one of those links, Google charge a certain amount of money to the website for the click. When you go on a website you’ll notice advertising from Google too. Daily Common Sense has ads from Google. Same thing happens here, when you click, Google charge a certain amount of money to the website you clicked on and part of that money is given to the webmaster publishing the ads. This is called AdSense and is an enormous source of income for Google. They get paid for sending traffic to other websites. That’s why Google seems to be everywhere now: They have to show substantial growth to their stakeholders and to do that they have to drive more and more traffic to provide more and more advertisement. That’s also the reason they’ll be jumping in the cell phone industry, so they can make a bit of money from all the web traffic that next generation cell phones are going to drive in the next couple of years.” Google profit margin is 27.57 % and their return on equity is 20.30%. Their current ratio is 10.616.
According to google they “frequently release new technologies that we aim to improve with each iteration. Often, we make products available early in their development stages by posting them on Google Labs, at test locations online, or directly on Google.com. If our users find a product useful, we promote it to “beta” status for additional testing. These test periods often last a year or more. Once we are satisfied that a product is of high quality and utility, we remove the beta label.”
Most of these apps that google provides are free, but they do have some certain apps that will earn them act fees. I also will like to add that google gets its money from advertising thats what tey do best.
Google provides many products and services, such Desktop products
Standalone applications, Desktop extensions, Mobile products, Online mobile products, Downloadable mobile products, Web products, Account management, Advertising,Communication and publishing, Development, Mapping, Search, Statistics, Other, Hardware products, Services, Previous products alsoReferences, and External links. Google has evolved much faster then any other search engine because of all the services that it provides. Even though google provides alot of free information and services it makes alot of their profit by providing advertisement to companies, everytime a person clicks on an advertisement google charges a fee to the company. Besides that google offers mobile phones.
Google makes money by offering other companies to advertise through the Google website, which is making them a very successful company. “The oft-overlooked money-making machine for Google is advertising, which allows Google to make its profits off its sites and other sites that participate in Google’s advertising schemes.”, according to Kelly Townsend, an eHow.com Contributing Writer. Google’s current profit margin according to Yahoo Finance is 27.57% which is an increase from the past three years. Their return on equity has increased from 22.69 billion in 2007 to 36.00 billion in 2009. The way I am interpreting all the information on Google is the numbers are steadily increasing, making Google a successful company.
I’v seen hundreds of article’s and popups on how Google offer’s money to employees who post advertisements, of course I believe this to be some sort of scam like every popup I have ever witnessed. Google is one of the biggest if not biggest website in the world, many user’s set their default page as “Google” and certainly they have had increased profit over the years, a multi billion dollar company, I would say Google is a safe company because it only seems to be increasing, but also is a “Staple” website because it’s much better than Yahoo, or Ask.com, the number one search engine in the world is here to stay.
After researching about Google and how they make money by offering free products for users, I stumbled on something on Google Corporate information. Google says “The revenue we generate is derived from offering search technology to companies and from the sale of advertising displayed on our site and on other sites across the web. Hundreds of thousands of advertisers worldwide use AdWords to promote their products; hundreds of thousands of publishers take advantage of our AdSense program to deliver ads relevant to their site content.” Google generate revenue basically by offering search technology to companies and selling advertising spots on Google. Another way Google makes money is by selling programing products like Adwords and Adsense. Google is a business, like every business, the main goal of Google is to seek profit. Being able to buy search technology from one of the top search engine is a great way to get ahead of your competitors. Therefore Google is going to continue to make a profit out off there search technology. As long as Google is a top search engine, and that why i believe why Google allows users to use Google for free to remain on top and continue to sell there search technology.
If you take a step back and think about Google’s income, you can see that it basely comes from us users. As users we every so often tend to click on an advertisement and every click generates money to Google. Advertisement plays a huge role on Google’s income and that’s why its so successful, no matter what financial crises we go through we are still going to browse around for what we like on the internet and if you happen to be on Google’s website and you click on an add they will profit from that. Another reason why Google is successful is the fact that they don’t have a production cost. Putting up an add on their website only takes time and not money so to calculate their profit you don’t have to deduct the cost of production.
As shown in Yahoo! Finance, Google has a Profit Margin of 27.57% and a return on equity of 20.30% in the 2009 which shows a great increase from the past years. Also, compare to Yahoo with 9.26% and AOL with 7.64%Google has the highest profit margin, these percentages show the success of Google and it will keep growing.
Google is the king of search engines they overshadow their competitors like yahoo and AOL.Their profit margin is at roughly 30% and their ROE is at 20 % .ROE is another word for Return on Investment.Google has been steadily climbing and i interpret these numbers as a company that is profitable. Stockholders are getting a hefty return on there investment. These numbers show me that Google is a great company to invest in.
According to Google’s own investor relations page they use “Adwords” and auction based ad serving system in which your business buys the top indexing/page space when people search certain term and on content producing websites that use the payout system “Google Adsense”, co-tagged indexing in other words. Advertisers pay per click or unique impression which can range from 5 cents per impression to upwards of $10 per impression (wikianswers). However though this is Google’s largest source of revenue they do not stop at ad serving, Google offers many pay services s well. Google merchant services, customized maps, expanded email storage, and apps for domains are just handful of Google’s ever expanding list of pay services. Having run content producing websites in the past and producing content for several popular humor sites I know that Google makes a whopping margin on ad services. Also as a beta tester for Google Wave I am confident that they’re constant innovations and research will continue to see them profitable in the future despite changing and more advanced indexing technology (written on completely different code). Also Google has already invested in IP location based ad serving which will allow better and more localized geographic ad serving (like the high tech version of ads in the local paper) so I see Google as having great staying potential.
After researching Google, I found that it was originally setup as a search engine for businesses. Selling advertisements associated with seacrh keywords, The ads were text-based to maintain an uncluttered page design.According to Wikipedia. Each keyword was sold based on a combination of click-throughs and price starting bids were $.05 per click. upon doing so goolge reached its peak in early 2004, Google handled 84.7% of all search requests on the World Wide Web. In 2004 Google seperated from its partnership with Yahoo taken a lost in some of its market shares,however after the IPO, Google’s stock market capitalization rose greatly and the stock price quadrupled. On August 19,2004 the number of shares outstanding were 172.85 million, while the “free float” was 19.60 million making 89% held by insiders.
Google’s profit margin for the past 3 years was 25% in 2007, 19% in 2008 and 28% in 2009. Their return on equity for the past 3 years was 19% in 2007, 15% in 2008 and 18% in 2009. I would interpret these ratio’s to mean that Google’s financial status has been pretty consistent over the past 3 years, even though they did have a slight decrease in both profit margin and return on equity in 2008. I would say that Google is doing pretty well and they could be a good company to invest in.
Everybody uses google; everybody uses google for free. Google is a search engine that almost every internet surfer has used to find information. This brings in the question: If Google is free, how does it make money? The answer is advertising. Google does sell a product per se; instead it sells space. If one was to search on Google, they might notice the sponsored ads at the top and on the sides. This advertising space is certainly not free. Another form of advertising is the pay per click method. When someone clicks on an ad through google, the advertising company must pay a certain price to google. Along with advertising, Google also offers services such as custom maps. Although we may see Google as a free service, it is one of the top internet companies in the U.S.
Google is one of the most powerful seach engines. They have become a successful company just from the click of web surfers. Personally I thought google was a free website, it is to us (users). Google charges company depending on the demand of the bidding keyword. A keyword such as “guitar” or “buy a guitar” depending on the demand of these keywords prices could range from $0.01 to $100 depending on the amount of bidders. Crazy money for a click? This is pretty much how google profits and is reaching every area of the internet. I will expect google to keep growing substantially specially after jumping into the cellphone field.
Although most World wide web users use google for free for the purposes of using a search engine or a free email provider. So this can make us wonder, where does google make their money in order to provide such a useful service? Well the answer is advertisement. Google runs advertisements on their page as well as sponsered links that specifically show up when for example typing in “buy guitar”. Google smartely has set this up in a bidding system to the highest bidder. The highest bidder is biding for how much money they must pay google everytime the sponsered link. These rage from .01 cents per click to 100 dollars per click. The beauty about Google’s business is that they are not really even selling a tangieable product. If you see the internet as a highway, google is selling to service to send traffic in the direction of a business. And now with cell phones they are also making a lot of money from mobile web traffic.