Wednesday, August 27, 2014

What is Google's business model?

What is Google's business model? - Founded in 1998 by Stanford graduate students Larry Page and Sergey Brin, Google will certainly be the dominant search company upon the Internet. The main source of company revenue comes from advertising related to Internet searches. But it is not the only source of income.

AdWords y AdSense

Where Google is today is largely thanks to the income produced by its AdWords and AdSense programs. When a user performs a search on Google, the results are displayed in two columns. The main column contains the search results based on algorithms designed to deliver the most relevant search results based on the keywords written in the search box. To the right of this column is a list of paid text ads are limited to four lines of text.

How it works

When a user clicks on an AdWords text ad, the company or person who wrote the ad pays a fee each time someone clicks on that ad. The sort of advertising is generally known as pay per click (PPC). In addition, Google pays a commission to websites, blogs, along with other online destinations to exhibit their ads on the sites. Right here is the AdSense program.

Advantages

The Adsense and Adwords programs work well because the ads are related to what the user is looking for.

YouTube & Facebook

Google owns YouTube and Facebook. Both social media sites are free to users. Google has yet to find a way to monetize these two sites. As a result, both sites are still spending more money than they receive through advertising.

Other interest on Google

Google is likewise investing heavily in the listed areas : cloud computing, Internet browsers, Google Maps, Google Earth, software applications online, the Android operating system for mobile devices.