Google earns money primarily through advertising. About 96% of Google's revenue comes from ads on its sites like Search, Maps, Gmail and YouTube. Google runs an auction-based advertising program called AdWords where advertisers bid on keywords or placements. When users search on Google and see relevant ads, the advertisers of those ads are charged only if the users click the ads. This generates the bulk of Google's advertising revenue.

1. How does Google earn Money ???
1
Drashti Shah
Research Analyst

2. Google AdWords

3. User Query Ad Auction
Search
Result (With
Ads)
User clicks
Advertiser
Charged
Conversation
Opportunity
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• It is an auction-based advertising program.
• About 96% of Google's revenue came from advertising.
• What is the basic idea??
Google offers - from Maps to Earth to Gmail to Docs to Drive - exists to further the primary business. Those services
were expensive to create and require great resources to maintain, but for the result -having users spend more time
on Google and thus perpetuate reading and clicking on Google ads - it's money well spent
Get an idea…

4. Ad Types
• Text ads
• Image ads
• Video ads
• Mobile ads
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Ad Rank
• Max CPC
• Quality
Score
Live tool
How it works?

5. • Focus on clicks on your ads.
• Focus on viewable impressions, or the number of times your ad shows in a viewable
position.
• Focus on conversions, or when people take a specific action on your website after clicking
on one of your ads.
5
• Set a daily budget to control how much you spend
• Fine-tune your bids
• Get the most for your money
• View your cost and payment history
Bidding Strategy
Control your costs

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