Google is a ubiquitous entity that provides a crucial service to millions of people every day. If you thought I was talking about internet searches, you’re only partially right. Google’s search service is obviously its most popular and high profile feature, but it is of course a free service. So how does Google make money? You could say that Google’s main activity, at least in terms of generating revenue, is advertising.
Google makes money primarily through ads
While Google can be used to connect people with free information online, its main source of income comes from connecting people with products and services offered by merchants. This is done through Google’s ads, primarily in the form of the text-based Pay-Per-Click AdWords. These simple ads are absolutely crucial to Google’s business model: revenue from ads makes up over 96% of Google’s total revenue, which in 2012 totaled over 50 BILLION dollars.
That represents a lot of people clicking on these ads. That means these ads are working to get leads to product or service providers’ websites.
Which Industries are using Google Ads the most?
- Finance & Insurance
- Retailers & General Merchandise
- Travel & Tourism
- Jobs & Education
- Home & Garden
- Computer & Consumer Electronics
- Vehicles
- Internet & Telecommunications
- Business & Industrial
- Occasions & Gifts
This infographic does a nice job of illustrating the above information.
What Kind of Businesses Should Use Pay Per Click Ads?
Basically, almost any kind of business can take advantage of the opportunities provided by Google’s Pay-Per-Click ads. There has been much written about what types of businesses find the most success with PPC ads, but it’s a good idea for any business looking for and edge online.
Who is actually clicking on Google ads?
It’s common for people to be skeptical about PPC ads. Many people might say that they don’t click on these ads, or don’t even see them. The fact is, people really do click on them. Google gets paid for every click these ads receive (hence pay per click) and their revenue from this source is huge. It’s a simple fact that businesses are using PPC ads like never before to draw in potential clients searching for what they are selling.
On top of it all, there is evidence that proves that PPC ads in conjunction with top ranked organic search results actually boost clicks and traffic to a business website more than PPC ads or organic listings alone.
The fact is, people are searching for products and services online (increasingly on mobile devices) and they are clicking on PPC ads that relate to what they are looking for.
The amount of competition out there for keywords relating to specific industries is very real and very fierce, depending on the industry. Google revenue statistics don’t lie. All types of businesses are heavily investing in online advertising and getting real returns on their investment. It’s simply not an option to ignore PPC campaigns any longer. They are an efficient and effective way to get leads and grow your brand.
