How Does Google Make Money?

Google is present in all areas of everyday life today. The services are particularly popular due to their reliable functions. However, many users have often asked themselves how these services are financed. The answer to this is surprisingly simple.

Gmail, Maps, StreetView, News, Drive, YouTube, Images. The list of Google services is endless. Each of these services scores above all with its ease of use but also with its quality. Anyone who uses Google knows that what they need is found.

But how is the search engine giant financed in the USA? None of the services charge users a fee. The answer to this question is surprisingly simple.

Patents, licenses, advertising

One of Google’s primary sources of income in the area of ​​AdWords – paid advertisements on Google. Anyone who uses Google services regularly comes into contact with the advertisements. Depending on the variant, billing is done either with a click or per impression.

But can it really make money? The trivial answer to this question is “yes”. This is because Google benefits from the numerous services and their accumulated data.

When advertisements appear, they are practically perfectly aligned with the user. You can only see ads that are actually relevant to the user. This leads to an effect that is extremely positive.

Targeted advertising increases the likelihood of a click. The accurate advertising leads to higher income for the advertisers and in return of course also for Google.

Ad blockers or the like do not have a negative impact. If the advertisement is not displayed, the advertiser incurs no costs. Google doesn’t gain anything, but it doesn’t lose either.

Does everything just come from advertising?

No, of course, Google is not only financed by advertising revenue. This allows businesses to buy some Google services for their business. The Google search on the company intranet is not uncommon. The high quality of Google services gives the search engine service provider a significant advantage over alternative offers.

In addition, Google holds various patents and the like, which must be licensed for other products. Google also generates income from this.

Also Read: What Are Google Ads?