By Ralph Phillips, CIS
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.
- XYZ company makes reusable water bottles and wants to advertise.
- XYZ pays Google money to have water bottle ads display on search results page and on partner sites
- 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.