How Does Google Make Money? Understanding the Business Model

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Google generates substantial revenue primarily through its advertising model, which leverages targeted advertisements that align with user search queries. When users search for specific terms, Google displays relevant ads alongside the search results, enhancing the effectiveness of these ads. This targeted approach allows Google to charge advertisers more for ad placements compared to other platforms. Despite concerns about profitability versus hype, Google's profits have been increasing significantly, contributing to a rising share price. The combination of effective advertising strategies and a growing user base underpins Google's financial success.
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Can someone explain to me how does Google make so much money? As far as I can see everything is free on their website.
 
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Hyperreality said:
Can someone explain to me how does Google make so much money? As far as I can see everything is free on their website.

Advertising. They have a remarkable system that they invented. Their systems match up your search term with advertisements with the same terms. If you search for like... "comcast cable service", the search engine might match up comcast to IT service websites or maybe internet provider websites and display them on the right hand side in the search results. This is measured to be highly effective so they can charge more money for the same ad space then other websites do because its targeted advertisement.
 
And the profits of Google are increasing at an unusual rate lately.
 
Google is more hype than profit... But their share price just seems to go up and up...
 

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