Google's main business

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.
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zzhang2006ProfessorAsked:
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neopolitanConnect With a Mentor Commented:
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.
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Guy Hengel [angelIII / a3]Connect With a Mentor Billing EngineerCommented:
advertisement --- by putting some sites higher in the search result ranks...
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humeniukConnect With a Mentor Commented:
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.
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humeniukConnect With a Mentor Commented:
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).
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BrughConnect With a Mentor Commented:
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





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magnetic_kisserConnect With a Mentor Commented:
hey who can forgot the legendary wiki  gr8 info here !!
http://en.wikipedia.org/wiki/Google
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