Search Engines Category Archive

How does Google make money?

20 Replies Christopher Roberts

The other day someone asked me how Google makes its money. At the time I called upon the knowledge I had and talked about the ads they have in the search results, the Chromebooks and Android systems they are selling, and Google Apps and Docs.

This week Google announced, it was disappointed with its 27% rise in revenues. Yes you read right, it was disappointed! Profits were up 6.4% and revenues 27%. In the same period, (the last quarter of 2011) Microsoft saw its revenues rise just 5%, and its profits fall by 0.15%!

Here is the interesting (weird) thing, Google’s share value fell 10% after the announcement, whilst Microsoft’s grew by around 2%! How crazy.

Anyway, this got me thinking, what are all the way Google makes money, as that is a lot to get just from the ways I mentioned.

How does Google make money?

The fact is, the majority of Google’s revenues come from the ads it presents to users on search result pages. However in recent years it has started making more and more money in other ways. So what are these other ways Google makes money?

Chromebooks

Introduced mid last year, Chromebooks are laptops powered by Google Chrome OS, where the laptop and the internet are one. There are no programs, desktop or start menu, the who experience runs from the cloud, utilising all Google’s (and other) online applications.The Google Chrome Logo

Samsung and Acer are the two firms which currently offer Chrome OS powered laptops, however expansion to more brands in the future is inevitable. Samsung and Acer obviously take their share the sales, as will Amazon and the other places Chromebooks are sold, however the laptops do make money for Google.

Android

I assumed that Google made money from Android, however I was wrong – Google does not make money from its Android mobile operating system. Android is a Google-led open source mobile OS framework, however Google does not profit from it.

Google Android's Logo

YouTube

Since Google bought YouTube in 2006, the site hasn’t been that profitable for it. YouTube is now the site with the third most traffic on the web, meaning that it has huge potential, however until recently, it was only making money from ads.

Before Google AdSense ads used to appear alongside videos, which they still do, however now they also advertise within videos too. Furthermore, YouTube have started offering online movies, which users can pay to watch from the comfort of their own home – or wherever they are.

Google Storage

Many Google services offer online storage, however this is only a finite amount. Should you want to purchase extra storage for Gmail, Google Docs, Picasa or Blogger (photos on blogger, not posts) then you can do so from Google Storage. I doubt this brings in Google a lot of revenue, but nerveless, it makes the internet giant some money.

Google Store

Google have an online store which distribute to may different locations around the world. They sell everything from branded keyrings and juggling balls, to t-shirts and even accessories with past Google Doodles printed on them.

DoubleClick, AdSense and AdWords

The majority of Google’s revenues come from the advertisers who use AdWords and DoubleClick. These ads are then either shown in the search results, or on websites which host AdSense units. Google makes lots of money out of ads. It doesn’t tell AdSense hosts what cut of the advertisers fees they get, but it makes Google a lot of money, so I would guess that they take home more than website owners hosting their ads.

Other Ways Google Makes Money

These are not the only ways Google makes money, other ways include, Google Apps for Business, Google Cloud Connect, Google Docs, Feedburner (through ads), Google Earth Pro, Google Mini (where you effectively buy the Google search engine to use on your own site/intranet), Google Checkout and more.

Hopefully this gives you some insight into just how many ways there are that the search giant that is Google makes money.

Google prunes some of its branches

18 Replies kellytheblogger

It is that time again at Google when it has to prune some of its various branches. Since Google co-founder Larry Page took over the reins as CEO in April last year, Google has been reducing and trimming its projects to renew and regain focus.

Google has come under investor scrutiny as it is facing increasing competition from both Apple and Facebook.

This spring cleaning is part of the various cost cutting and refocusing efforts. In the latest cleaning exercise announced a few weeks ago, Google will be pulling the plug on seven of its projects.

1. Google Knol

Google launched Knol in 2007 to help improve web content and as a challenge to Wikipedia that enabled experts to collaborate on in-depth articles. Knol will be available till April 30, 2012, to enable users to download their Knols to a file and/or migrate them to the WordPress platform. After that till October 1, 2012, Knols cannot be viewed but users will be able to download and export content. After October 2012, the Knol content will no longer be available.

2. Google Gears

Google has closed the Gears browser extension for creating offline web applications and stopped supporting new browsers in March this year. From December 1, 2011, Gears-based Gmail and Calendar offline will not work across all browsers, and Gears will not be available for download from late December this year. Google announced that this is part of their effort to help incorporate offline capabilities into HTML5. Users can access Gmail, Calendar and Docs offline in Chrome.

3. Renewable Energy

Google has abandoned its ambitious plans to make renewable energy cheaper than coal. Google had started this project in 2007 as a means on driving down the price of renewable energy with a strong focus on solar power. Google announced that the head of the project, Bill Weihl (William E. Weihl) has left the company and it believes that other organizations were in a better position to take its efforts to the next level.

4. Google Wave

Google has earlier stopped further development on Google Wave. Now it has announced that as of January 31, 2012, Wave will be available as only a read-only version and users won’t be able to create new ones. This will be completed closed on April 30, 2012. Users can transfer individual waves using the existing PDF export feature.

5. Google Search Timeline

Google will be removing this feature that displays a historical graph of results for a search query. Users will now be able to restrict any search to particular time periods using the refinement tools on the left-hand side of the search page. Uses who wish to view graphs with historical trends for a web search can use Google Trends or Google Insights for data since 2004. If you need more historical data, the “Ngram Viewer” in Google Books offers the same information.

The Google Trends Product Logo

6. Google Friend Connect

Google Friend Connect, which is a social feature, will be discontinued from March, this is because Google wants people to start using the Google Plus social network instead.

7. Google Bookmarks

The feature will become unavailable from December 19, 2011. This enabled users to share bookmarks and collaborate with friends. The existing bookmark Lists will be retained and labelled to make it easier to identify. The other features of the Google Bookmarks will keep on functioning. The change won’t affect the non-English users as it was an English only feature.

This spring cleaning is only a sign that Google knows that it currently faces big competition, so it needs to make sure that it discontinues disused/inefficient services it provides.

Google Christmas crackers!

1 Reply Christopher Roberts

Google always strike me as a fun and playful global giant, which always tries to be a little bit eccentric and different. This year in the run up to Christmas, I have so far found three of Google’s ‘Easter egg’ – which is basically another way of saying hidden, but findable jokes.

The first of the Easter eggs I have found is some Christmas lights. These come up underneath the search box when you search for the word ‘Christmas’ or many different phrases with the world ‘Christmas’ in them, like ‘Merry Christmas’. It’s not much, but it is festive 🙂

Google's Easter Egg Christmas LightsThe second Easter egg is much more exciting! When you search for the words ‘Let It Snow’ Google will take you to the search result, and everything will seem normal – for a second or two. Then all of a sudden, snowflakes will start to fall from the top of your browser, and the screen will start to mist up! You can then demist your browser either by clicking ‘Defrost’ or by using your mouse – although you still need to click the button to start using Google again. Its a really good touch by Google, really gets you in the holiday spirit!

Snow falling on a Google search page

When you type 'Let It Snow' into Google, it starts snowing in your browser!

Google Frosted/Misted Up

After a few seconds of snow, Google becomes very frosty!

The final Easter egg I have found is with the Google owned site YouTube. On some videos – I still haven’t found a link – a snowflake icon comes up on the bottom bar of the video, which if you click, gives you falling snow over the video, which you can control with your mouse.

After a bit of research I have found one more Easter egg! If you type in ‘Hanukkah’ you get some special decorations, which appear like the Christmas lights, underneath the search box.

Finally, something that isn’t actually hidden, but worth mentioning is Google’s message from Santa. SendACallFromSanta.com is courtesy of Gmail, and lets you design a personalised message which Santa can either phone home with, (if you live in the USA or Canada) or create an animated video which can be sent via email. It is totally free and can be used for Children and Adults alike, due to the various serious and humorous options.

Google seem to want to get us in the festive spirit, so now give you my festive wishes 🙂

Merry Christmas Everyone!