?
Solved

Google's main business

Posted on 2007-08-04
8
Medium Priority
?
549 Views
Last Modified: 2013-12-08
Just for my knowledge.
I know Google is the most popular search engine now. I wonder
how it actually make money. By advertisement ? To me
there doesn't seem to be many ads. on it when I use the search
engine. Can  anyone explain to me how companys like Google's
or Yahoo actually makes money and the bussiness model?

Thanks.
0
Comment
Question by:zzhang2006
7 Comments
 
LVL 143

Assisted Solution

by:Guy Hengel [angelIII / a3]
Guy Hengel [angelIII / a3] earned 90 total points
ID: 19632277
advertisement --- by putting some sites higher in the search result ranks...
0
 
LVL 33

Assisted Solution

by:humeniuk
humeniuk earned 180 total points
ID: 19632291
Actually, that's a bit misleading.  Google's organic search results are independent of any advertising.  You can not pay for higher search results ranks.  However, there are clearly marked ads above and beside Google's search results.  Google also publishes ads on numerous websites and shares the revenue with the publishing site owner.

The bottom line is that online advertising is getting bigger and bigger every day and Google has a very large piece of the action.  A large part of their success comes from their abilty to use their index of websites to target ads to sites with related content therefore ensuring a better match between the content of the ads and the interests of the site visitors.
0
 
LVL 33

Assisted Solution

by:humeniuk
humeniuk earned 180 total points
ID: 19632297
From Google itself: "Today, the majority of our revenue comes from advertising ..." (see http://investor.google.com/faq.html#money).

Anyway, if you want more detailed info, there is a great book called 'The Google Story' by David Vise and Mark Malseed that goes into a lot more detail (www.amazon.com/Google-Story-David-Vise/dp/055380457X).
0
Concerto's Cloud Advisory Services

Want to avoid the missteps to gaining all the benefits of the cloud? Learn more about the different assessment options from our Cloud Advisory team.

 
LVL 9

Assisted Solution

by:Brugh
Brugh earned 90 total points
ID: 19632299
Angel, Google blatently tells you that the result is an "advertised" search result and does not include them your actual, un-paid "search results".  THey are either at the top separated by something or on the right side.

Here are some links on how google makes its money...

http://manojjasra.blogspot.com/2007/04/how-google-makes-money.html
http://www.cbsnews.com/stories/2004/12/30/60minutes/main664063.shtml





0
 
LVL 7

Assisted Solution

by:bk_jreinstein
bk_jreinstein earned 90 total points
ID: 19632816
0
 
LVL 11

Accepted Solution

by:
neopolitan earned 210 total points
ID: 19633433
The main source of revenue for google is still the advertisement.
1. Advertisement in google pages: adwords:  Special algorithms used by google makes this contextual advertisement using key words in the subject that we use and the web site that the advertiser has got. It is cost per click advertisement. Though this cost is small, the millions of clicks they receive makes it sure that Google earns a lot.
http://searchenginesinfo.com/ar/marketing_googles_adwords_select/index.htm
2. AdSense: This lets others sell advertising space for google in their website  that is relevant to their site. Both the owner of the site and google earn money this way.
http://www.oreillynet.com/pub/a/network/2005/07/26/WhatIsAdSense.html
3. Google has a number of other services. A list is given here:
http://en.wikipedia.org/wiki/List_of_Google_products
Many of these have premium business models:
eg:
--Popular google earth program has a pro version for $400 per year that can be used for movie making and GPS.
--Picasa web album is free for 1GB; thereafter you pay, which may not be cheap.
Yahoo has a different business model:
-Revenue from search based advertising is still a large chunk of their income.
-There are banner ads that are different from the pay per click ad revenue
-A huge number of other marketing methods contribute to revenue:
check this page for yahoo services:
http://docs.yahoo.com/docs/family/more/
eg: premium internet, association iwith internet providers like BT, AT&T.
0
 
LVL 10

Assisted Solution

by:magnetic_kisser
magnetic_kisser earned 90 total points
ID: 19634069
hey who can forgot the legendary wiki  gr8 info here !!
http://en.wikipedia.org/wiki/Google
0

Featured Post

Free Tool: ZipGrep

ZipGrep is a utility that can list and search zip (.war, .ear, .jar, etc) archives for text patterns, without the need to extract the archive's contents.

One of a set of tools we're offering as a way to say thank you for being a part of the community.

Question has a verified solution.

If you are experiencing a similar issue, please ask a related question

Ready to get certified? Check out some courses that help you prepare for third-party exams.
Over time, the online landscape has altered considerably, but that’s nothing compared to the up-and-coming trends that will shape the web design industry in the coming year. Keep reading to find out which trends will shape B2B web design in 2018.
The viewer will learn how to look for a specific file type in a local or remote server directory using PHP.
The Bounty Board allows you to request an article or video on any technical topic, or fulfill a bounty request to earn points. Watch this video to learn how to use the Bounty Board to get the content you want, earn points, and browse submitted bount…
Suggested Courses
Course of the Month13 days, 21 hours left to enroll

809 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question