How do search engines earn their money

If there are three companies that are dominating the technology space, they are — Apple, Microsoft, and Google.

And you know how Apple and Microsoft makes money. But, do you know how Google makes money? Recently, I came across this interesting thread on Quora. Think of a company as a machine you design and build. It sells something to someone, and re-invests some of that to help make more sales in future. Advertisers are increasingly turning to the Internet to market their products and services. Google AdWords, our auction-based advertising program, enables advertisers to deliver relevant ads targeted to search queries or web content to potential customers across Google sites and through the Google Network, which consists of content owners and websites.

Our proprietary technology automatically matches ads to the content of the page on which they appear, and advertisers pay us either when a user clicks on one of its ads or based on the number of times their ads appear on the Google Network. We share most of the revenue generated from ads shown on a site of a Google Network member with that member. Thanks to their huge ad inventory. This is contrary to traditional banner advertising where advertisers are required to pay whenever their ad is displayed on a banner network.

The price an advertiser pays for a click known as Cost Per Click or simply CPC usually depends on a lot of factors. Google is using a kind of bidding system. You select the keywords for which you want to show ads so that when someone searches for those keywords on Google, your ads will be shown.

The price you need to pay Google depends on the competition for that particular keyword s. We all have seen how the smartphone market exploded over the past few years. The mobile search market is also growing and soon mobile devices will be the primary way of accessing the web. And it focuses four key areas: Mobile Advertising, Mobile Apps, Mobile Content, and Mobile Devices.

You see a lot of ads within several apps when you use different mobile apps, right?

Google makes money from YouTube by selling text, image, video ads, and also from subscriptions. Google Play is a digital distribution platform where they charge developers and publishers for hosting and marketing their products. With the acquisition of Android and Motorola, Google entered the devices space and now they are selling a wide range of mobile devices and gadgets like phones, tablets, wearable devices, etc. When it comes to Apple or Microsoft we all know how they make money.

How Search Engines Make Money | Search Engine Watch

Apple makes most of its money selling iPhones and iPads. Amazon Cloud Drive vs. Now that you know how Google make so much money when they are offering most of their services for free.

But have you ever wondered how Google search works? You can also hover your cursor or can click on it over certain image elements to learn more about it. That is, Google navigates the web made up of 60 trillion web pages and counting by crawling from one web page to another by following links. The next part is about how Google uses its search algorithms that is, computer programs and formulas to find the web pages that you are looking for — in order to deliver the best results possible.

And the last part is about how Google fights spam. Google says the majority of spam removal is automatic that is, it uses algorithms to filter out spam from its search result pages but they also take manual actions against questionable websites. They also give you a chance to take a look at the web pages that were removed from the Google Index few hours back as live spam screenshots. Now you know that the biggest search engine is also the biggest advertising company in the world. March 25, ; Last Updated: Just to add one thing.

The reason that Google makes money is because for the first time the advertiser could see how effective their add was. If you place an add in a newspaper or magazine you know how many consumers it will reach but you do not know how many of them will act on that add.

Google with their pay per click lets you know just how effective your adds are, for example you can run a number of different key-word related adds like pay day loan and see which one is the most effective, you can see which one actually resulted in the most sales. You written a wenn researched and well executed article.

How Internet Search Engines Work | HowStuffWorks

I am also a blogger and Google is like God for us not only because of Adsense but also for Google Search engine. Google will never be a god to me. My God is not the god of filthy lucre. Jesus Christ is MY GOD AND SAVIOR!! Most of the time user will not give attention to the paid advertising…I mean many people will click on the top and side adds…is really making money by Google AdSense.

Thank you for writing it… Now i know lots about Google Inc. Google adwords is a good source of revenue for them………. Hi, I was curious where you got you statistics from. I find that they contradict other sources.

I find your post intriguing and informing; but a list of sources would be nice for the readers. I believe I have already linked the sources. Can you please point out which stats needs more clarity? I started learning and doing and experimenting web 2. I write about tech, marketing, and everything in between that excites me. And I love to work with small businesses to help them get the most out of the web.

Outside of that, I'm equally passionate about the financial markets and I also spend a lot of time doing random things see random facts about me.

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How Google's Search Engine Makes Money | Investopedia

Archives Disclosure Policy Mojo Privacy Policy Random. Skip to primary navigation Skip to content Skip to primary sidebar Minterest tech. Home New to Minterest? How Does Google Make Money? So, How Does Google Make Money? Then how do they make big bucks?

Now, How Much Are Advertisers Paying Per Click The price an advertiser pays for a click known as Cost Per Click or simply CPC usually depends on a lot of factors. Wait, Google has even more money making machines!

Mobile Devices With the acquisition of Android and Motorola, Google entered the devices space and now they are selling a wide range of mobile devices and gadgets like phones, tablets, wearable devices, etc. How Google Search Works Now that you know how Google make so much money when they are offering most of their services for free.

Hi Friend, You written a wenn researched and well executed article. You got a point there. Will update the chart soon with stats. What do you have to say about this article? Popular Posts Free Pay Per Click PPC Advertising Coupons Bing Ads, AdWords, Yahoo, Amazon, LinkedIn, etc. Over 51 Places To Find Freelance Writing Gigs That Pays Make Money Writing Articles: Search Minterest Search for Subscribe Get every new blog post by Minterest delivered straight to your inbox.

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