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Google AdWords-How Google Makes its Money?

July 24, 2014

Google AdWords How Google Makes its Money

Many people are interested in how Google makes money. The answers about Google’s finances are easily found in the search engine itself. There are three ‘sponsored results’ on top of the page in a yellow box. These are actually paid ads known as Adwords. Similarly the ads are also displayed on the right hand side of the search result page. These ads are a major revenue generator for Google.

More than 70% of Google’s revenue comes from Adwords which is a PPC (Pay Per Click) program. The remaining 30% is generated by AdSense which displays Google sponsored ads on various websites. The company earns millions from these two sources of income. Here are three Q&A’s that our clients often ask us:

  • When Google pays money?

Google Adwords delivers money to the company when a visitor clicks the ads. This is where the concept of PPC (Pay Per Click) comes from. People who have just started their business or who are not well established would have surely found it more difficult, if they were supposed to pay only for displaying the ads.

  • How do I calculate the money I would pay per click?

A different value is given to every keyword; therefore less competition means you pay a lower cost. Google follows an auction format in which you can bid higher for a keyword than its original value. This is done to get your ad in the first, second or third position in search results.

  • How do I know if Google is transparent in setting prices of Adwords?

Google is very transparent, providing information and videos on a wide range of topics such as Adwords auction, quality scores and search ads working process.

If you like the concept of Google Adwords, Sam Crawford can offer you excellent Pay Per Click advertising in Sydney, Australia. Let us handle all the Internet advertising of your website, so you can concentrate more on your products and services.

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