How does Google® make so much money?

Question

For starters, their stock is on fire, but I still don't understand how Google® makes so much money on advertising alone? It doesn't make sense to me.

Answer 1

Because internet advertising is nowadays BIG MONEY -- and Google controls the pie. According to Internet Advertising Bureau, "Internet advertising revenue rose again with a quarterly record of $4.9 billion for the first quarter of 2007." http://www.iab.net/news/pwc2007.asp



Look at this eWeek Magazine slideshow on how Google controls the advertising space http://www.eweek.com/slideshow/0,1206,pg=0&s=26782&a=209549,00.asp



In the search market alone, Google controls about 65% of the market, compared to Yahoo's 21 percent and MSN's 8 percent



Google controls about 75 percent of the paid search market, while its competitors control the remaining 25 percent



With YouTube acquisition, Google controls 51 percent of the online video market -- and if video advertising takes off, Google's prospects look incredibly bright

Answer 2

As the most popular website with the most hits of any commercial website behind only Yahoo, each time someone clicks on featured links and advertisements on any of thier products they get advertisement money. They also get more money from advertisements than most because ads can be targetted to the user. So instead of seeing mostly mortgage and other financial ads on bank websites, simply searching on Google for a bank or loan would give u the same ads. Very nice system if you look at their AdSense program.

Answer 3

from what I have heard from web developers companies pay search engines to have their name on the top of the search. $50 a search may get you close to the top. So if someone was looking for a hotel in Atlanta and the Holiday Inn paid google $50 per search then their website would show up first and the company that paid the next highest amount comes underneath them.

Answer 4

it not just the search engine don't forget there's other things google owns.