Tuesday, December 23, 2014
Most of young students I have met don’t seem to be bothered by why there is so much free stuff flowing in the web; somehow they get used to enjoying the freedom of the web.
|photo by www.tutor.com|
I get this type of money-making question often from elderly students, who somehow wonder how the employees in those companies make a living. Of course, it would not be possible to sustain a company only by selling stocks in Wall Street. All companies need to make real profit in order to stay in the game, and Google is making a mega profit by selling ads.
Selling ads? Where?
This is another good question I usually receive after “selling ads.”
Google generates revenue primarily by delivering relevant, online advertising and that accounts for 96% of their $58.8 Billion sales in 2013.
This is Google home page and it is hard to see where it places all those billions' worth of Ads, because there are no ads here at all.
What Google does is post ads for clients each time when we do the search. According to our search, Google would post the ad on the top, bottom or side of the search results and Google doesn’t try to hide it; it shows “Ad”, right in front of it.
How many people click those ads? Apparently a lot. Since Google only posts ads related to users’ search results, this does make most users happy to see those helpful ads and increase the chance of clicking them.
What other things does Google do to generate profit? It analyzes website traffic, optimize search results and keyword search for companies. And it also sells apps, books and music for Android cellphone system through Google Play.
If you are interested to check out details of yearly revenues and expenses, here is the annual report from Google.
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