How Can I Make $7.3 Billion in Three Months?

By Ralph Phillips, CIS

Be Google.

Google reported $7.29 billion of revenue for the third quarter (July-Sept) of 2010. If you bought Google stock on the afternoon of 10/14/2010 then you saw an 11% gain the next morning on 10/15/2010. News of the higher-than-expected revenue and net income caused after-hours trading to boost stock values tremendously.

So, how does Google make money? I use Gmail but it’s free. I use Blogger (owned by Google) but that’s free, too. In fact, I’ve talked about Google Docs for productivity on this blog before. That’s also free.

Whenever you go to a Google page (think search results page) or a Google partner site, you’re going to see an advertisement. Those ads generate practically all of Google’s revenue.

  1. XYZ company makes reusable water bottles and wants to advertise.
  2. XYZ pays Google money to have water bottle ads display on search results page and on partner sites
  3. With the magic of programming, Google makes it happen.
    When someone searches on Google for “water bottle”, an XYZ ad displays in the search results
    When someone searches on Google for “healthy habits”, an XYZ ad displays in the search results
    And, when someone visits a blog (partner site) about hiking in central Oregon, an XYZ ad displays in the side bar of the blog.
google ads
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