I use Google a lot, but I never click any adsense or adwords. I have a sneaking suspicion that other people using Google will behave like me. So the valid clicks may be a small amount. So how can google make a huge profit from its advertisement program?
Does Google make a big money from its advertisement program?
well that's not really a big issue for google as not all the ads that are displayed are PPC (paid per click). Some ads are paid per impression (the number of times that the ad is displayed).
Also, google gets paid anyways, or you wouldn't have seen those ads from those particular advertisers or companies for example.
What remains is that how much money do the publishers make (the ones that put the google ads on their site). Because they only get a small percentage of what google makes for each click or impression.
it could get a bit complicated and long to go into details so I hope that this will give you some idea.
Also I added a link which should help if you read it.
Reply:Also, please be aware that Google recently acquired DoubleClick Media for (If my memory serves me correctly) $3.5 Billion in cash.
DoubleClick is the internet's largest ad network and also owns the publisher network Performics. This gives Google massive control over internet marketing.
My prediction is that they will attempt to buy out ValueClick next who is the second largest and owner of Commission Junction. Yahoo and MSN better get on the ball or Google is going to have too much control.
Reply:OH YES -- advertising is Google's major source of income. From their First Quarter 2007 results:
Google reported revenues of $3.66 billion for the quarter ended March 31, 2007, of which:
- Google-owned sites generated revenues of $2.28 billion or 62% of total revenues
- Google’s partner sites generated revenues, through AdSense programs, of $1.35 billion, or 37% of total revenues
Aggregate paid clicks, which include clicks related to ads served on Google sites and our AdSense partners, increased approximately 52% over the first quarter of 2006 and approximately 13% over the fourth quarter of 2006.
You may be one of those who don't click on the ads, but majority clicks on those ads. Those that don't click are mostly the webmaster, SEO or other Adsense publisher types
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