Last year Google made £2.5bn in the UK. So how does a company make so much money when it seems to provide all of its services for free?
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Google is an advertising company and its biggest product is you, the user. The company controls almost 90 per cent of the search market in the UK, and almost 96 per cent of Google's revenue still comes from advertising.
Every day the site returns 1 billion search results globally and serves up billions of ads alongside. When you do a search on Google.com you'll often see listings at the very top and on the right side.
Google.com charges money for those listings. Every time someone clicks on those links, they company that is listed gets charged.
The amount varies depending on the competition for that particular key phrase that was searched. Key phrases can be as low as five cents per click, whereas others can be ten dollars or more per click. Google also runs these ads on websites that participate in Google's AdSense program.
The advertisers pay Google for each click, Google keeps some of the money, and passes the rest of the money to the websites that ran the ads. Google also places ads on other sites that they run, like YouTube and Gmail.
The main product is its huge pool of users and extensive data about how they behave online. This data is used to match companies with potential customers, serving up ads that users are more likely to want to click.
Your online habits from YouTube, search and Gmail are all used to profile your behaviour. On top of this, Google follows your surfing habits through its Analytics and Adsense codes, embedded on web pages to track your interests outside of search ..
Stay tuned for another fact.. Till the time keep asking ..
Google is an advertising company and its biggest product is you, the user. The company controls almost 90 per cent of the search market in the UK, and almost 96 per cent of Google's revenue still comes from advertising.
Every day the site returns 1 billion search results globally and serves up billions of ads alongside. When you do a search on Google.com you'll often see listings at the very top and on the right side.
Google.com charges money for those listings. Every time someone clicks on those links, they company that is listed gets charged.
The amount varies depending on the competition for that particular key phrase that was searched. Key phrases can be as low as five cents per click, whereas others can be ten dollars or more per click. Google also runs these ads on websites that participate in Google's AdSense program.
The advertisers pay Google for each click, Google keeps some of the money, and passes the rest of the money to the websites that ran the ads. Google also places ads on other sites that they run, like YouTube and Gmail.
The main product is its huge pool of users and extensive data about how they behave online. This data is used to match companies with potential customers, serving up ads that users are more likely to want to click.
Your online habits from YouTube, search and Gmail are all used to profile your behaviour. On top of this, Google follows your surfing habits through its Analytics and Adsense codes, embedded on web pages to track your interests outside of search ..
Stay tuned for another fact.. Till the time keep asking ..
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