How Does Google Make Money?
First, let me tell you how much money Google makes.
‘OK. How much?’
Statistics provided by statista.com
For those of you that hate graphs, that’s £109.22 billion ($136.22 billion) in 2018 alone.
‘How did they do that!?’
There is a saying among Internet Marketers; “If you’re not paying for it, you are the product.”
Google is an advertising agency, and YOU are the product. Let me spell this out as clearly as I can.
They sell information about you, to their customers.
You are not their customer.
You use their services for free.
You are a user.
‘What does Google do with this information? ’
It sells them to their customers. Their customers can be the largest corporations in the world to small family businesses. This is where Google ads comes in. And Google Ads makes up about 80 – 90% of their revenue. Here is a link from ABC’s (the company that owns Google) website, showing their 2019 Third Quarter results.
‘What are Google Ads? ’
Now, when consumers do a search, let’s say – for a bathroom sink, Google will retrieve a list of websites that sell bathroom sinks. Thousands and thousands of company’s websites will be displayed for free.
'How Does Google Know which adverts I would Like? ’
When you use these ‘free’ services the big ‘G’ learns more about you.
What interests you have.
Where you live.
When you are at work.
Who your friends are.
And A LOT more.
With this information, it can target adverts to make them more specific to your profile. The more specific the adverts, the more likely you will click on them. The more adverts you click on, the more money ‘G’ gets. Not to mention, that these services grow their brand trust.
‘Bit Spooky isn't it?’
Er well – Yes.
But we have other articles, that will help with that…