When most people think of the word Google, the first thing that comes to mind is the famous search engine set with a day based theme with white background. Yes indeed! How does a Google make so much money when it seems to provide so many services for free? Its biggest product is you that are huge pool of users. Google’s majority revenue comes from online searches. Specifically, Google is an advertising company and generate revenue by serving up ads and customized services to potential customers these customers could be advertisers and advertising agencies, companies and website owners who take part in Google network. Google earns money from web traffic, website owners pay Google a share of the returns that it generates from the visitors. Automated online auction is developed by Google for simple and cost effective purchasing.
Have you know from where Google makes money? Here are some online services Google provides such as Google Play store, Google Apps, Google Cloud Platform, Google Fiber and Paid Advertising. This search engine is diversifying its revenue and finding unique ways to make money on different services and products.
#1: Google Play Store
Initially, Google Play struggles to keep up with Apple’s app Store but quickly the scenario changed as more and more developers began creating Apps for Android devices. This has led to increased downloads from the Google Play Store. Global downloads increased the revenue and Google had paid out $5 billion to App developers.
#2: Google Apps
The journey started with Gmail, but now Google offers a web of tools to help people to get their work done. This web-based tool is known as Google Apps. There are other versions of this App called as Google Apps for Education and Google Apps for Work. With so much precision and transparency the companies started to trust Google with their confidential data and the concept of cloud emerges. Their charges vary as per the user basis and Google claims that more than 3 million companies including Fortune 500 use Google Apps. The success is driven by the success of Google Apps for Education; Company claims users from top universities in the US. Google is set to make more money in the future when these students become accustomed to Google ecosystem.
#3: Google Cloud Platform
Beginning with the search engine, Google slowly added more services and products for their users to create Google Cloud Platform. This service offers database, query tools to support their users 24×7, infrastructure along with the expandable storage memory options for the users to build their own online service. Analysts have predicted the profit from the Cloud around 1.4 billion. Google Cloud Platform was not accepted initially but now has grown and accustomed by the users.
#4: Google Fiber
It is the Google’s latest and interesting ventures its optic fiber broadband internet service known as Google Fiber.It starts with a connection that’s speed up to 1,000 megabits per second. This service was initially rolled out to Kansas in 2011 and since then rolled out to Texas, Provo, Austin and Utah. Google Fiber building requires huge investment but Google could stand to make lot more money. If they do make a real go at it, analysts are predicting that it could make the company upwards of $5 billion.
#5: Paid Advertising
Online Advertising is divided into Google Adwords and Google Adsense. Search engine provides advanced algorithms to have their users results displayed called Google Adwords. This service is a cost per click, so if you do not get on then Google does not make any money from your search. Google Adsense allows the advertisers and advertising agencies to join this network and display ads on their website. This is cost per page.
Google studies more about your browsing habits and respond accordingly. In nutshell, Google is a major player in the advertising industry. Upcoming innovations could be Cloud Debugger, Cloud Trace and Cloud Save. Google assures users for the privacy concerns. Google dominates the mobile market, Play Store sale and licensing out Android operating system for free.