Wednesday, November 08, 2006

How does Google make money?

I don't understand how Google makes so much money from ads.

I've spent at least 10-12 hrs a day, connected to the web, for work and play, say for the past 10 years, and I must've clicked on a sponsored ad, a handful of times..that's less than 10 ads in the past 10 years. Of course, this obviously also includes previous incarnations of relevant ads like DoubleClick's and Overture's.

So where are all these clickthru's coming from?

P.S. The irony of the Google AdSense box on my own blog hasn't escaped me! I'm just curious about who these folks are.

5 comments:

Anonymous said...

I do not get it either.

and how does google make money from youtube?? googlepages?? blogspot??

Anonymous said...

google makes money from ads. Google is the number one search engine and there are millions of queries per second and the ads are displayed along side the search results. The ads are also displayed through adsense across millions of websites. Some of us might click on the ads rarely (I click about 2 ads in a year). But there are others who click a lot. Specially those people who don't know that it's google adsense ads click on the ads a lot compared to us who know about the ads.

I agree that google does not have any ads on blogspot, analytics, googlepages etc but their profits are enough to run such sites and pay for such sites.

Anonymous said...

Well, after many discussions with various friends, I have come up with one rationale about that. The ads on Google is not meant for us. if we analyze from our point of view, it does not make sense. But there are people who are not from computer world. And for them, it makes sense. When they search for something, they want an easy way out and the ads on Google serves the purpose and hence the money making for Google. At the same time remember that click-fraud is rampant in Google. Though Google admits only about 5-10% click-fraud, but they never publish the actual result which makes it more doubtful. Think of the Google making money from the ads is the same way HSN is making money on television. Though it's not exactly the same model, but the audience is same!

Anonymous said...

You know, Google doesn't just make money from "Click Thru's". An article or well written explaination about "how does Google make money" explains in a very thourough explanation other ways they make money without the use of AdSense & AdWords.

George said...

Interesting post... I can see that you put a lot of hard work on your blog. I'm sure I'd visit here more often. George from google make money.