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» About Google (phases of search engine) » Revenue Model » Algorithm Updates » Earnings since inception » Google’s Branding Strategy » What made Google better

Google offers targeted advertising solutions and global Internet search solutions. Its principal products and services include:

Google AdWords
Google AdWords is a pay per click advertising program of Google designed to allow the advertisers to present advertisements to people at the instant the people are looking for information related to what the advertiser has to offer. When a user searches Google's search engine, ads for relevant words are shown as "sponsored link" on the right side of the screen, and sometimes above the main search results. Google generate most of the revenue from Google AdWords. In year 2005, Google launched the Google Publication Ads Program through which they distribute their advertisers’ ads for publication in magazines. Google recognize as revenue the fees charged advertisers when their ads are published in magazines.

Pay per Click Advertising: Pay-Per-Click (PPC) is the best way to send immediate, targeted traffic to your website. It is an online advertising payment model in which payment is based onqualifying click-throughs. An advertiser has to pay every time his ad receives a click. The Advertisers decide the keywords relevant to their offer that should display their ad and the maximum amount they are willing to pay per click for that keyword.

Google AdSense
AdSense is an ad serving program run by Google. Website owners can enroll in this program to enable text, image and, video advertisements on their sites. Revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads are administered by Google. AdSense program includes AdSense for search and AdSense for content. AdSense for search was launched in the first quarter of 2002 and is Google’s service for distributing relevant ads from its advertisers for display with search results on the Google Network members’ sites. AdSense for content, launched in the first quarter of 2003, distributes ads from Google’s advertisers that are relevant to content on Google Network members’ sites. Google advertisers are required to pay Google a fee each time a user clicks on one of their ads displayed on Google Network members’ web sites. 

Google Answers:
Google Answers is an Internet search and research service offered for a fee by Google. It was launched by Google in April 2002.
Instead of performing the search themselves users pay someone else to do the same. Customers ask questions, offer a price for an answer, and researchers answer them. Researchers are not Google employees. Prices for questions range from $2 to $200; After a question is answered, Google keeps 25% of the payment, sends the rest to the Researchers.

Froogle:
Froogle is a service from Google that makes it easy to find information about products for sale online. Froogle is a price engine website launched by Google Inc. Froogle is different from most other price engines in that it neither charges any fees for listings, nor accepts payment for products to show up first. Also, it makes no commission on sales. Any company can submit product information (via a “data feed”) and be included in the Froogle engine. Advertising space is available for purchase to be displayed in Froogle in the form of an AdWords ad.

There are certain other services by Google which it offers for free. These are:

Of all the paid sources of revenue for Google, Adwords generates more than 90% of the revenue. As such, the role of adwords in Google’s growth is very important. If Advertisers continue to opt for AdWords and the usability of the ads increases in terms of the number of people clicking on the ads, Google will continue to show profits. This fact makes room for manipulations in the search results and paid ads in order to increase revenues. Also instances of click fraud increase the revenue of Google when they are not dealt with properly

Every year the number of people using Google and its network sites increases, and so does the revenue. However, Google has always taken steps to increase its share of the pie. According to statistics the percentage distribution between Google and the adsense publisher up till 2004 is:

• Year end 2002 it was 88% to AdSense publisher (12% to Google)
• Quarter end, march/2003 it was 82% to AdSense publisher (18% to Google)
• Year end 2003 it was 77% to AdSense publisher (23% to Google)
• Quarter end, march/2004 it was 76% to AdSense publisher (24% to Google)

As is evident the share with Google is increasing over the years and one can only speculate what will happen over the years.........

Google’s new revenue model:
Google is currently testing a new advertising program that pays site owners based on a Cost-Per-Click model. The program, called Cost-Per-Action, was revealed via an invitation e-mail from the Google AdSense team to Web site owners.

As per the email:

"The Google AdSense team would like to invite you to test a feature that provides you with a new way to earn revenue from your Web site by hosting ads that are compensated based on a Cost-Per-Action (CPA) basis," "These ads are very different in that you will be able to choose amongst a selection and you will also have more flexibility in promoting them."

The CPA ads differ from AdSense ads in that a site owner gets paid whenever a visitor clicks on an ad and performs a specific action, such as purchasing a product from the advertiser. On the other hand, an AdSense text ad, on the other hand, generates revenue for the site owner if a user simply clicks on the ad.

The CPA ads are not designed to compete with AdSense ads, said the e-mail, as they will display across a "Content Referral" network that is separate from the AdSense network. Google also said the CPA ads would appeal to a different type of user.