Adsense Google Make Money

How Does Google Make Money?

Ever wonder how Google actually makes money?

Whether you're trying to find directions on Google Maps, using its email service Gmail, sharing your photos on Picasa, or simply looking for something on the Web, the search engine giant provides numerous products (check out all of them at this link) free of charge, and yet maintains billions of dollars in revenue. So how does it all work?

In short, it's all about advertising.

Google places advertisments on most of its products. It is, however, done a bit discreetly, with the ads placed under "Sponsored Links." So you won't see Google's homepage drowned in promotion skins or obnoxious banner ads for a new miracle weight loss pill. Too bad the same can't be said about the Google-owned video sharing site YouTube, which features plenty of advertisements.

According to Google's investor relations FAQ, the majority of the company's revenue comes from advertising.

"Advertisers are increasingly turning to the Internet to market their products and services, " Google explains. "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."

Check out the company's two advertising programs, Google AdWords and Google AdSense, for more information.

Google's company overview also explains that as a business, "Google generates revenue by providing advertisers with the opportunity to deliver measurable, cost-effective online advertising that is relevant to the information displayed on any given page. This makes the advertising useful to you as well as to the advertiser placing it."

"We believe you should know when someone has paid to put a message in front of you, so we always distinguish ads from the search results or other content on a page. We don't sell placement in the search results themselves, or allow people to pay for a higher ranking there."

Want to know more about Google on how it began or got its name? Check out Why is Google Called Google? for the facts.

Sources:

http://www.google.com/intl/en_us/ads/ads_1.html

http://www.google.com/intl/en/corporate/

http://investor.google.com/faq.html