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How Google Earn Money from it's Search Engine

Hemant Verma - 2:40 PM
As we use Google, many times in a single day and this awesome product is totally free not even google is free but it's Gmail, YouTube, Drive, Docs, Picasa, Maps, Earth, News, Analytics, Blogger.com or their Mobile Apps are absolutely free so how Google earn money and how it can be a worth billion company? This question comes in mind many times but this is very simple to know answer and answer is below in details.

Answer is simple, we are the money machines for Google...! Yes, it could be full of shock for you but this is true. We means users is biggest product for Google. Google company controls almost 90% of search market of UK and almost 97% market of US and Google earns almost it's 95% revenue from the advertising.

What we are searching and how we are searching it's all track by company and on the daily basis, site returns almost 1 billion search results globally and serves billion of ads alongside. The secret to success is in the scale of its operation.

The main product is its huge pool of users and extensive data about how they behave online. This data is used to match companies with potential customers, serving up ads that users are more likely to want to click.


Google's Money Making Machine

Google has two top most programs which is making them king of money and that is....

  1. Google Adwords
  2. Google Adsense

Google already says in their own words...

Today, the majority of our revenue comes from advertising.

Advertisers are increasingly turning to the Internet to market their products and services. Google AdWords, our auction-based advertising program, enables advertisers to deliver relevant ads targeted to search queries or web content to potential customers across Google sites and through the Google Network, which consists of content owners and websites.

Our proprietary technology automatically matches ads to the content of the page on which they appear, and advertisers pay us either when a user clicks on one of its ads or based on the number of times their ads appear on the Google Network.

We distribute our advertisers’ AdWords ads for display on the Google Network through our AdSense program. We share most of the revenue generated from ads shown on a site of a Google Network member with that member. 

Now Let's talk about Google Adwords....

Google Adwords is a very simple product that concentrates on the online advertising, it means we can advertise our business, shop, product etc. on the Google by it's Adwords program and that will show our ads on the results page of  Google.

Many times when you were searching anything, and on the result page you will show some ads on the result page like below in image.

So these kinds of ads performs a major task and help Google to earn money from it's Adword program. Google charge a very respective amount from these kinds of ads. These ads are obviously sponsored by advertisers on Google AdWords who pays Google every time you click any of those ads. So, if you search for “loans” or say “insurance” on Google then you’ll  find ads relevant to “loans” or “insurance” itself.

Google not only earn money by it's ads they also offers others to earn money by their ads, and that is known as Google Adsense program.


Read: Everything About Google Adsense Program


Now Let's Talk about the Google Adsense Program....

Googel Adsense Program is unique program when it was launched by the company, this program is only for publishers, simply in this program, Google provides some ads to a website or blog owner, and website or blog owner will have to publish that ads on their blog/site and Google will pay you for that kinds of ads, this is a simple formula of Google.

Simply this system of Google Adsense is totally works on the CPC system (Cost per Click) and the cost of per click is depend on the no. of hits on your site/blog.
E.g. This is the Google Adsense Ads which is provide by the Google
to place on their website and blog.

Others ways by Google Earn Money outside the Advertising....

There are other ways also by which Google earn money.

  1. Google Play Store
  2. Google Apps
  3. Google Cloud Platform
  4. Google Fiber

Conclusion...


Even after so many acquisitions and business diversification, over 90% of Google’s revenue still comes from advertising.

Again, 70% of this ad revenue is from Google AdWords (that is, Google owned web properties like Google.com, YouTube.com, etc.) and 30% from Google AdSense (partner networks and websites).

Now you know that the biggest search engine is also the biggest advertising company in the world.

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