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How does Google make money

Discussion in 'Google' started by ben123456733, Oct 6, 2011.

  1. #1
    I'm wondering how Google manages to keep itself afloat. If you can buy a $75 adwords voucher for $1, obviously Google doesn't end up getting $75. They still have to pay adsense users the full chunk though. I know they won't pay adsense users $75, but it's sure a lot more than $1.

    Do they rely on the clicks from their site personally, and if they are losing money with adsense, why not remove it?

    Surly there's something I'm missing here, anyone fill me in?


    Read my last post before you answer.
    SEMrush
     
    ben123456733, Oct 6, 2011 IP
    SEMrush
  2. joeuk

    joeuk Peon

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    #2
    Because most adwords users don't but $75 vouchers for $1 and instead due to inexperience and lack of knowledge end up grossly overspending on their campaigns? The more adwords and adsense accounts google has signed up, the more money it makes.
     
    joeuk, Oct 6, 2011 IP
  3. YasminS

    YasminS Peon

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    #3
    These vouchers are mostly sold when they are not used or thrown away by the actual business owners whom they were sent to. On the contrary, it should be good enough for your realize that, if google can send vouchers worth of millions, how much are they actually making that they can afford to waste millions in trials.
     
    YasminS, Oct 6, 2011 IP
  4. CanadianEh

    CanadianEh Notable Member

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    #4
    They make money from advertising, lots of it. Don't worry about these vouchers affecting their bottom line.
     
    CanadianEh, Oct 6, 2011 IP
  5. Cybernetuk

    Cybernetuk Member

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    #5
    I wish I had Googles profits for a day!
     
    Cybernetuk, Oct 6, 2011 IP
  6. CanadianEh

    CanadianEh Notable Member

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    #6
    I would be quite happy with a minute or two.
     
    CanadianEh, Oct 6, 2011 IP
  7. g36

    g36 Peon

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    #7
    The voucher is only a way to entice new advertisers. If google has more advertisers, they get more money. And what's $75 anyway, google makes $1000 every second.
     
    g36, Oct 6, 2011 IP
  8. noahqw

    noahqw Member

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    #8
    Google makes money several different ways but their main stream of income comes from Google Adwords.
     
    noahqw, Oct 6, 2011 IP
  9. normajbon

    normajbon Peon

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    #9
    Google also makes money through Gmail. When we sign in to our mail accounts on Gmail which is probably the most popular at this point in time, we are shown sponsored links on our accounts. And these links are always relevant to the keywords of the mails that we receive.
     
    normajbon, Oct 6, 2011 IP
  10. AndroidRoot

    AndroidRoot Peon

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    #10
    Uhm...is this a serious question?? Not sure how Google makes money cause they give you a $75 voucher?? People spend thousands each money on keywords....when you are raking in billions monthly, 1 time $75 vouchers amount to squat.
     
    AndroidRoot, Oct 6, 2011 IP
  11. ben123456733

    ben123456733 Active Member

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    #11
    Okay, obviously I'm misunderstood here. I know Google makes a ton of money, I'm not saying they don't. I'm not asking every way how Google makes money.

    I simply asked, why do they keep google adsense, how do they make money on this? I'm pretty sure there is almost nobody who pays for every bit of advertising they recieve. I bet close to all of their adwords balances come from vouchers, on the vouchers they lose a lot of money. I would bet they lose profit through all the vouchers and adsense.
    So my question is, do they rely on the advertisements the personally sponsor, google,gmail,youtube to make most of the adwords clicks? Otherwise I see no point in them keeping vouchers.
     
    ben123456733, Oct 6, 2011 IP
  12. normajbon

    normajbon Peon

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    #12
    Every time those links or banners are clicked Google gets a set amount (based on how high that click was bid). Under the adsense revenue sharing arrangement the website owners are given 30% of that revenue and Google keeps the other 70%. Google is making almost 2 billion dollar in revenue every quarter.Not every year, but EVERY QUARTER. And 97 percent of that money is from adsense.
     
    normajbon, Oct 7, 2011 IP