This model works quite well as it allows those businesses to track their ads results, to offer their ads to interested users (in fact, through tracking Google can understand what users might want) and pay based on what users click through. In short, they can bid on keywords (such as “car insurance”) to sell their products and services. Google uses an advertising business model, where companies take part of an ad network called AdWords. In fact, Google uses that data to tweak its search algorithm, to make it able to read, interpret, understand and process users’ queries.īut if users aren’t paying, who’s paying for it? Businesses: I get more sales through targeted Ads
In fact, the billions of people that each day use Google are what makes the search engine better and better.
#Hidden business free
One thing was clear for its founders though: it was supposed to be free for its users. Initially, it was not clear how the search engine was supposed to make money. However, thanks to a powerful algorithm, called PageRank it soon took off. In fact, when it appeared on the scene, in the late 90s, it was one of the latest search engines. Google is the most powerful search engine in the world.
Related: How Does Google Make Money? It’s Not Just Advertising! Users: I can find an answer to anything How did Google manage to be so financially successful and sustainable over time? The answer lies in a compelling value proposition for three key players. Is Google’s business model the only possible for search?Īs of 2017, over ninety billion dollars, which consisted of 86% of Google’s revenues came from advertising networks.Privacy concerns: Do you really have to track me?.The web as a giant billboard: Is this indeed the web we want?.Biased content: Is content that targets keywords really relevant?.Asymmetry toward users: You give me data, I make money.Google’s business model? Not without a flaw.
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