How does Google Make Money?

Google is your best friend.

People can find information at the fingertips. No matter whether you’re searching for the latest mobile in the market or weather forecast information. Every information is available on Google. In fact, Google is the most popular and used search engine across the world.

Google has tons of outstanding stuff. Yes, you’ve heard it right. Google is making people’s life easier with incredible products and services. The popular products of Google are Gmail, Chrome Browser, Google Assistant, Google Drive, Google Maps, Google Photos, Google Meet and more. Every service is offering rich-set of features to help people and make their everyday life easier. With Google Meet business you can hold a video conference with your team. Your team members can join the meeting using a desktop or mobile phone. “Google Maps” is used to find out the location around the world. The popular service i.e Google Play Movies is the best place to watch movies, videos or tv shows using a computer, tablet or mobile device. Google Drive helps to create, store, access and share files to others.

Have you ever heard about Google Assistant? Of course many times. It is another product from Google that became popular in less time.

The Google Assistant helps the user to save time. But how? Google assistant will arrange the things accordingly throughout the day. Ultimately, users can save their time and concentrate on other important things. Whether you’re on the way to home or restaurant, Google assistant connects within a fraction of seconds and provides personalized results.

How does Google make money?

Google services are playing a significant role in human lives. These services such as search engine, music, drive and various other services people use daily at home, work or on the move. These Google services are available for free. So, how does Google make money? Want to know the answer? Yes!!! Continue reading…

Google is generating annual revenue from multiple sources. The search engine uses several ways to partner with advertisers and merchants. It includes Google Adsense, Google Pay, Google Analytics and more.

Google is earning revenue through Google Ads and Google AdSense. If you’re a marketer or business owner, then you might have implemented Google AdSense at least once to generate revenue for your business. Google Ads and Google AdSense work in a simple way. Advertisers will submit their ad campaign to Google, the campaign has a list of keywords. These keywords are related to their product or service. After the approval from Google, the ad campaign will be displayed on the sidebar of Google. The advertiser will pay a certain amount to Google whenever a user clicks on their ad campaign. The commission will vary from one ad to another.

With both Google Ads and Google AdSense services, the ultimate strategy of Google is to provide merchants or advertisers with better ad placements. These can effectively target users who are planning to buy their product. Also, allows users to know the information about the relevant product they’re looking for. Advertisers can choose Google Ad Bidding to improve the position of ad placement. They bid a certain amount on the ad campaign to display their ad on the top positions. This way, advertisers can expect better conversions.

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How does Google Ad Bidding work?

Google Ads can be categorized into 2 types i.e Search Network and Display Network.

  • Search Network Campaign – It allows the advertiser to display their ad Google search listings. These ads will be displayed when a user query is matched with the targeted keyword.
  • Display Network Campaign – It allows the advertiser to display their ad on various platforms such as Gmail, Youtube, or other websites that use AdSense to monetize themselves. These ads will be displayed according to the user’s activity on your website.

Many advertisers participate in bidding. They bid for a popular keyword or a placement. The winner will be dedicated by “Google triggering”. The winner of this auction will be decided by considering two metrics such as CPC bid and quality score.

According to the analysis, Google’s 162 billion dollar revenue is generated through Google AdSense and Google Ads in 2020.

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Google Shopping Ads

People always say YES for shopping. Millions of users search for different products or services to purchase on Google. With Google Shopping Ads, people can easily find and view the required product in no time.

Google Shopping Ads are also called Product Listed Ads. These are product-based ads that are displayed with the image, price, brand name and other information across Google. It is an effective marketing channel for business. Because businesses can reach users with clickable images above the search results.

When Google considers that a user’s search query is to buy a certain product or service, it automatically brings up Google Shopping Ads.

While browsing online, you might have encountered multiple shopping ads on Google. These are the best way to pick the target customer as the shopping ad is direct and allow them to place an order. Google is earning 21% annual revenue through Google Shopping Ads.

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Other Revenue

As already discussed, Google is earning great revenue from Google Ads and Google AdSense. Now, let’s discuss other revenue of Google.

The remaining Google annual revenue is generated through non-advertisement related services such as media, cloud computing businesses like Chromecast, Google Apps, Google Play Store, Chromebooks, Google Cloud Platform and more. People across the globe are using these Google services. No matter online or offline businesses. The offline products are Google’s self-driving car and Google Glass.

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Conclusion

Ever wondered how Google makes money? The answer is straightforward in this article. The powerful search engine Google is earning incredible income from various sources. Google is earning products by selling target ads. Also, providing personalized services to companies and individuals. Simply put, Google is earning 162 billion dollars through Google Ads and Google AdSense. The additional income is generated through other Google services such as Google Cloud Platform, Chromebooks and more. Also, Google is earning revenue by selling the domains.

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