google revenue model

Google's Revenue Model

Google offers targeted advertising solutions and global Internet search solutions. Its principal products and services include:

Google AdWords, Pay per Click Advertising, Google AdSense, Froogle, GoogleAnswers and their latest advertising program which is Cost per Click model.

Google AdWords

is a pay per click advertising program of Google designed to allow the advertisers to present advertisements to people at the instant the people are looking for information related to what the advertiser has to offer.

When a user searches Google's search engine, ads for relevant words are shown as "sponsored link" on the right side of the screen, and sometimes above the main search results. Google generate most of the revenue from Google AdWords.

In year 2005, Google launched the Google Publication Ads Program through which they distribute their advertisers’ ads for publication in magazines. Google recognize as revenue the fees charged advertisers when their ads are published in magazines.

Pay per Click Advertising:
Pay-Per-Click (PPC) is the best way to send immediate, targeted traffic to your website.

It is an online advertising payment model in which payment is based onqualifying click-throughs. An advertiser has to pay every time his ad receives a click.

The Advertisers decide the keywords relevant to their offer that should display their ad and the maximum amount they are willing to pay per click for that keyword.

Google's revenue model aims at increasing the visibility and traffic of its small business partners, streamlining their marketing costs, qualifying their leads and helping track returns on investment.

This function is a very useful function and will continue to bring about an increase in income especially if the number of people clicking on these ads increase. However, Google should take care that this function is not misused. there might be and increase in click frauds when manipulation of search results are not dealt with properly.AdSense is an ad serving program run by Google.

Website owners can enroll in this program to enable text, image and, video advertisements on their sites. Revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads are administered by Google.

AdSense program

includes AdSense for search and AdSense for content. Google advertisers are required to pay Google a fee each time a user clicks on one of their ads displayed on Google Network members’ web sites. Here is a picture of AdSense screenshots

Froogle

is a service from Google that makes it easy to find information about products for sale online. Froogle is a price engine website launched by Google Inc. It differs from most normal price engines in the sense that it neither charges any fees for listings, accepts payment for products to show up first nor make any commission on sales.

Any company can submit product information (via a “data feed”) to be included in the Froogle engine. Advertising space is available for purchase to be displayed in Froogle in the form of an AdWords ad.

Reference

http://www.organicspam.com/google_revenue_model.asp

youthdew.blogspot.com/2008/06/revenue-models-for-google-amazoncom.html