There are several ways that Google generate profit. The most common revenue model for Google to generate profit are sales, transaction fees, subscription fees, advertising fees, and affiliate fees.
Google generate most of the revenue from advertising solutions and global Internet search solutions and the principal products and services are:
Google AdWords
Google AdWords is a pay per click advertising program. It is designed to allow the advertisers to present advertisements to people who are looking for information related to what the advertiser has to offer.
A user may ads for relevant words by seaching in Google's search engine which are shown as "sponsored link" on the right side of the screen or above the main search results.
Most of the revenue of Google are generate from Google AdWords. In year 2005, Google launched the Google Publication Ads Program through which they distribute their advertisers’ ads for publication in magazines. Revenue derived as the fees charged advertisers when their ads are published in magazines and when those ads are clicked by visitors.
An advertiser will be paid every time as his ad receives a click by the pay per click advertising model.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 also have another revenue model which also an advertising form call Google Answer.
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 to enable the users pay someone else to performing the search by asking questions, offer a price for an answer, and researchers answer them.
However, the 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.
Amazon's revenue model
Amazon.com is an American electronic commerce (e-commerce) company the first major companies to sell goods by Internet.
Amazon.com started as an on-line bookstore, but soon diversified to product lines of VHS, DVD, music CDs, MP3 format, computer software, video games, electronics, apparel, furniture, food, toys, etc.
Amazon.com generate revenue from commissions from suppliers when there is a sale of product. In thier main websites, there are few advertisement displays in the page where users browsing through some items.
eBay's revenue model
eBay Inc. is an American Internet company that manages eBay.com. It is an online auction and shopping Web site where people and businesses buy and sell goods and services worldwide.
In addition to its original U.S. Web site, eBay has established localized Web sites in thirty other countries.
eBay Inc also owns PayPal, Skype, StubHub, and other businesses which generated around $6 billion revenue from the transaction fee.
eBay does not have inventory like Amazon.com. It only provides technology platforms and tools for e-commerce.
Besides, eBay also gains sales from the service of listing customer’s product to be sold to other users and advertisement fee.
The following are the article related to the above topics:
No comments:
Post a Comment