Does anyone know how Google makes money? What services or products do they provide that they charge for?
6 comments:
Anonymous
said...
According to their Web site, this is how:
"How does Google make money?
We make most of our money from the sale of advertising, which appears adjacent to our own search results and on sites maintained by a large network of publishers across the web who participate in our AdSense program. These ads, known as AdWords, are automatically matched to the content of the page on which they appear by our proprietary software. On Google properties, ads are always clearly identified as such and are physically separated from the algorithmically derived search results.
Google does not sell placement within our actual search results. We believe paid advertising can provide information as useful as search results, but that users should always be able to distinguish between the two."
It seems hard to believe that they make enough money to support that whole Google compound and staff, just by selling advertising. I wonder if there's something else to it?
I heard that they have a couple of those stationary swimming pools on the campus -- where the pool generates a current that you swim against for exercise.
I heard they don't have many employees (relative to the usage of their service). Because they are all probably huge dorks too, they have probably figured out really cost effective operating costs.
Google makes money primary from their exceptional ability to match users search queries with specific advertisers. Google's search engine technology just increased its market share (ahead of Yahoo and MSN) to 56% of the search market.
Interestingly enough, Google just filed to raise an additional 4 billion dollars in cash through a secondary stock offering. Much of this money will be poured into research and development (or a well time acquisition to supplement their broad intellectual property).
Yeah, Google has all kinds of additional revenue streams on the side; they've been quietly acquiring many smaller back-end tech companies. But their biggest cash flow comes from targeted/highlighted ads in gmail and elsewhere, plus their keyword program (whereby companies pay for their name, product, or whatever to show up at the top of search results). Those wily Googlians.
6 comments:
According to their Web site, this is how:
"How does Google make money?
We make most of our money from the sale of advertising, which appears adjacent to our own search results and on sites maintained by a large network of publishers across the web who participate in our AdSense program. These ads, known as AdWords, are automatically matched to the content of the page on which they appear by our proprietary software. On Google properties, ads are always clearly identified as such and are physically separated from the algorithmically derived search results.
Google does not sell placement within our actual search results. We believe paid advertising can provide information as useful as search results, but that users should always be able to distinguish between the two."
So...by advertising, it seems.
It seems hard to believe that they make enough money to support that whole Google compound and staff, just by selling advertising. I wonder if there's something else to it?
I heard that they have a couple of those stationary swimming pools on the campus -- where the pool generates a current that you swim against for exercise.
I heard they don't have many employees (relative to the usage of their service). Because they are all probably huge dorks too, they have probably figured out really cost effective operating costs.
Google makes money primary from their exceptional ability to match users search queries with specific advertisers. Google's search engine technology just increased its market share (ahead of Yahoo and MSN) to 56% of the search market.
Interestingly enough, Google just filed to raise an additional 4 billion dollars in cash through a secondary stock offering. Much of this money will be poured into research and development (or a well time acquisition to supplement their broad intellectual property).
Check out the first four our five pages of their annual report. They actualy own this blogging service.
http://investor.google.com/pdf/2004_AnnualReport.pdf
Yeah, Google has all kinds of additional revenue streams on the side; they've been quietly acquiring many smaller back-end tech companies. But their biggest cash flow comes from targeted/highlighted ads in gmail and elsewhere, plus their keyword program (whereby companies pay for their name, product, or whatever to show up at the top of search results). Those wily Googlians.
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