Talking about the best search engine today, the name is Google; this site is the most visited website in the world with daily visitors of about 3.5 billion, almost half of the world population. As part of its development to the world of information technology, Google offers several services; these services are monetized, thus, make the brand stay afloat.
But the nagging question is, how exactly does Google make money. The answer is not far fetched; the answer was succinctly provided in the official report released in the company’s annual report, it stated that “we generate revenue primarily by delivering relevant, cost effective online advertising”. From this, it has been clearly stated Google makes heavy junk of its income from advertising. But how does this fetch so much money that the technology based information platform now worth $498 billion, making it the world most valuable company?
The 18 years old brand, Google, makes $70 billion annually and the lion’s share of this income comes from advertisement, usually shown as part of its search result. The humongous visitors of Google are enough to convince any investor of its service. Online advertisement has taken over the advertising world; the large numbers of the internet users have made most advertisers delve into the use of the internet as their advertising tool.
To actualize the dream of gaining awareness and making enormous sales, investors and advertisers now sought out for platforms where large users converge on a regular basis. This has given Google a edge over other online platforms in the world, thus, making it a choice for all investors and other companies.
As we all know, Google is the most reputable resource base; where users get solutions to their problems. Every problem has a solution, as you post your problems, some people are also posting solutions. This makes the number of users on Google grow sporadically on a daily basis. With 2 million searches performed within 2 minutes, advertisement on google is as valuable as gold. You can conclude that Google is more or less like a dating site that matches users who are in the process of trying to solve problems with advertisers who have products that can solve these problems.
For any product to appear on Google network, a fee is always attached. However, if the product has more than one producer; the producer with the highest pay takes the lead when a problem relating to the product surfaces on google platform.
Apart from advertisement, Google has an ancillary source of revenue; it is called Google Cloud. This is a new platform, launched five years ago, it deals with Google apps line, Google play and hardware. This platform allows you build and host application and website; also, allows you store and analyze data. It produces google applications like the google app engine, etc. Google has an app storage platform where applications on different categories are uploaded and downloaded. For any application to be uploaded on Google store, the developer has to pay the price; either on a monthly or annual basis. This platform alone fetches Google about $2.2 billion annually.
Now, what fetches Google money to the extent that it is the most valuable company in the world? It is perfection; the struggle started 18 years ago, with a defined goal and zero value. Now it has become an enigma in the game, with huge value, reputation and trust.