How does Google make so much money?

Posted on 20 Dec 2009 - by admin In: FAQs: Making Money with Google

I heard from adverts but how can this be so? Crappy little postage stamp sized ads that i always ignore or never respond to? Am i unique in this or does everyone else buy goods and services from online advertising therefore making the likes of Google money which they make from charges advertisers to advertise with them?

You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

6 Responses to “How does Google make so much money?”

ina
December 20th, 2009 at 7:47 am

You may not be clicking on Google ads and maybe ignoring them, but a lot of people respond to the ads. From Google’s income statement, their revenue breakdown for Q2 2009 is:

Revenues2,455,991
Y/Y Growth rate77%
Q/Q Growth rate9%

Google web sites = 1,432,461
Y/Y Growth rate = 94%
Q/Q Growth rate = 10%
Google network web sites = 996,567
Y/Y Growth rate = 58%
Q/Q Growth rate = 7%

Total advertising revenues = 2,429,028
Y/Y Growth rate = 78%
Q/Q Growth rate = 9%

Licensing & other revenues = 26,963
Y/Y Growth rate = 58%

As % of revenues
Google web sites = 58%
Google network web sites = 41%
Licensing & other revenue = 1%

If you want to earn some cash with google check out

http://makemoney-with-google.blogspot.com/

It will teach you how to make 1k a week, Check it out, you will be making a full income online in no time
elie
December 20th, 2009 at 7:56 am

everyone knows it and uses it
Tommy
December 20th, 2009 at 8:51 am

Advertisers pay Google by the click.

When somebody clicks on the ad, Google makes money.

It does not require the click to result in an actual purchase.
Travis
December 20th, 2009 at 9:41 am

It’s not just people responding to ads, but advertisers willing to pay a rich buck to get their ads featured there. Most of Google’s income over the past many years has been coming through their AdWords advertiser system.
deepblue_111
December 20th, 2009 at 10:00 am

Yes, you could consider yourself unique in this case, but I’m pretty sure some day you will click on one of those stamps when you feel the need. Google’s bidding system works better than others, that’s why they make so much money.
gatzap
December 20th, 2009 at 10:24 am

Along with all the sidebar ads there are those search results listed in blue right at the top. Those pay a lot to be at there. The bids to be the top listed can run to over 5 bucks per click. That adds up fast.