How Does Google Earn Money?

Did you ever ask yourself how google earns money? There are several ways for google to earn money but what is the major field in which google prints a lot of money? 

Before we start, let's have a look at google's annual income, monthly income, daily income, hourly income and income per minute. Stunned? Yeah, we will talk about that much deep because google really earns a lot of money. Read the following information:

 

• Yearly Income - 18252 crores
• Monthly Income - 1521 crores
• Daily Income - 50.7 crore
• Hourly Income - 2.1125 crore

Note - These calculations are made on an average basis, this is not accurate data. 

Now, coming back to the point. What is the major sector which provides google a really great income? This sector is the advertising sector. Google earns a major part of its income by being an advertiser. Let us know the concept of Advertisation.

Concept Of Advertising Module

Google comes in contract with those who are ready to sponsor anything legal and safe. Google tells the businesses how google is a helpful platform to sponsor their products. There is a total of 160 apps owned by Google listed in the Google Play Store which includes YouTube. Google bring its traffic from those 160 apps and different websites. They sponsor products in form of visuals and audio. However, it doesn't mean that google itself owns the full amount gained by advertising platforms and businesses to the world. There are two types of 'Google's advertising module'

Two Types Of Revenue Generation From Advertising

There are two types of revenue distribution of Google's Earnings. These two types are based on the Allocation of the revenue generated.

• Full Commission In Revenue

When an advertisement is placed on a platform where Google is the only entity which is working or say when Google is the only source of traffic in any of its apps then it collects its full commission of revenue. For example, Google Maps, Ranking of Websites on Google, Gmail and many other apps or websites are the sources of full-commission revenue.

• Partial Commission In Revenue

When an advertisement is placed or shown on platforms which are not owned by Google but are shown by Google Ads and the traffic is brought to the advertisement by any other entity, then it is clearly shown here that two entities are working together to generate revenue. As there is more than one entity responsible for revenue generation, therefore, the revenue will be divided into partial/fractional units. 

 

Earning from websites:

In one of its earnings, Google generates it by ranking websites, Adsense etc. 

1. Google earn money by placing an advertisement of a website when one searches for its related keywords. When a user searches any keyword, he will find the topmost website in search results as an appearing advertisement. Google takes an amount from that website owner and places his website in the top results.
2. Adsense! It is the base of Google's income. When one makes his own website to gain some money from it then they have to increase the number of daily users who visits their website. After that, all they have to do is to place an advertiser so that it can place ads on their websites and they can earn money.

Earning from apps:

1. Google allows users to bring their apps to Google Play Store. When anyone installs their app then Google starts paying them. Google pays them based on use. How many downloads and how much current use of that app. When one succeeds in that then he can place ads on its app. Google will work as a middleman here. Google will bring add on to that app now and ask for some money from the advertiser. And will share it between itself and the app owner.
2. Google earns from its own apps like Google Play Store, Youtube, Google Maps, Gmail and many more. It uses in-app purchases, and an ad-removal account,  for advertisements.