Google’s Three Major Financial Players

It almost seems like a trick. Over 80% of all Internet users go to Google’s free search engine if they want to find a website, but somehow Google is able to make billions of dollars. If you’re having a hard time finding out how Google is making money, then it’s probably because you’re focusing too much on the search engine aspect of Google. The fact is that Google has many different services, websites and products that are producing lots of money.

AdWords

This is by far Google’s best service since it creates the vast majority of Google’s revenue. AdWords is used by Internet marketers around the world to reach a larger audience of potential customers. A business just pays for ads and Google places them on its own search pages, publisher pages and other content outlets so that people will see and click the ads.

While most ads only cost about $5 or less per click, some keywords are so competitive that businesses can’t even get noticed unless they pay $40 or more per click. The vast number of business partners and online publishers have propelled AdWords to be the number one online advertising platform.

YouTube

YouTube is another major source of income for Google. Acquired in 2006 for over $1.6 billion, YouTube is accessed by billions of users and it allows people to watch videos and upload movies. YouTube makes money in two different ways.

If you have watched a popular video, then you probably noticed that an ad appear either before or during the video. These ads are often connected to AdWords.

The second way is through display advertising. YouTube offers major businesses a way to reach millions to billions of users by displaying their advertisement on popular pages. Companies often have to pay thousands of dollars per day for this service.

Android

Google acquired the Android OS and uses it with many of its smartphones and tablets. Not only that, but the Google Play Store generates quite a bit of money for Google because people love buying apps, books and movies through this app marketplace.

While Android is currently Google’s smallest major player, it still makes a significant amount of money.

Google has dozens of different financial outlets, but the three biggest ones are AdWords, YouTube and Android. Though many have tried to duplicate this success, even major search engines like Bing and Yahoo have been largely unsuccessful.

Source: www.bestaccountingschools.net

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