Google, a student start-up by Larry page and Sergey brin. This is how Google known in the initial stage, but now?. Honestly, when I hear the word Internet, it will bring Google’s picture into my mind. That’s what Google’s influence now. When a person connect to the Internet, the first page he may going to browse will be Google.
Google is a giant network now. From search engine to social media , they having a wide variety of services. Cloud storage, video broadcasting, mail server, app store, book library, blogging platform so on. No one can even list Google services without two blog post. That I will do soon. From these all online products/services, they are getting millions of dollars every day. But their main income source or backbone of their finance is just two products. That is our topic today.
Google AdWords and AdSense are those two products. These two services handles more than 70% all over internet advertisement. Two platforms deals with advertisers and publishers. They are the key of Google’s wealth.
On 2003 June, Google release AdSense, a publisher network, which will enable publishers to display Text, Image or rich media ads based on the niche of the website. It will generate revenue either based on pay per click (PPC) or pay per impression. In 2014 Google earned almost 13.6 billion USD from AdSense service, which is nearly 22% of their total revenue.
Adsense uses multiple factors to make ads related to the website and users, like content type, Geo location of the visitor, recent search interest of the user etc. 32% of the advertisement cost that advertisers paid for the Ad, will be Google’s share and the remaining 68% will share with the webmaster. And in case of search Ads, 49% revenue will be Google’s and remaining 51% will give to the search partner.
Google is so keen in case of quality of website that comes under AdSense service. So before they allow a website to join in their network, Google will review the site based on content quality and usability. Even after approval, they continuously monitor the publisher and any malpractice will lead him to gain ban from the network forever.
AdWords is a network where Advertisers comes together to bid for the space that AdSense reserved from publishers. AdWords was released on 23rd October 2000. The original idea of AdWords invented by Bill Gross of idealab. Google wants to adapt the idea, which lead to the formation of AdWords. AdWords was significantly similar to Bill Gross’s idea, which lead to legal action. Eventually it got settled out of court.
AdWords having lot of features to target audience to advertisers product or site based on its category. Video ads, app ads, web content ads, game ads etc. We already discussed about Remarketing which is a great feature from AdWords.
In a simple way, Google collecting advertisement budget from AdWords and spending them on AdSense. Meanwhile they are taking their share for providing such an awesome error free service. These two are the main income source of Google Inc. Because of its quality of service, still it is is the legend in online marketing.