Saturday, June 4, 2011

What revenue model is employed by google?

Google's revenue model is pay-per-click advertising. The
advertisements that Google has on its own websites and the advertisements that it places
on other websites with Adsense provide Google more than 90% of the revenue it earns.
Using complex algorithms Google makes the advertisements as relevant as it can to the
person visiting the Google website or any other website where Google has placed the
ads.


The advertisers do not have to pay Google for visitors
seeing their advertisement but instead only if a person clicks on the ad and is led to
the advertiser’s website. With Adsense Google can place advertisements on web sites it
does not own and in return the website owner is paid a percentage of the revenue Google
earns from the advertiser.


Just advertisements bring Google
over $8 billion every year in profits.

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