How does Google earn money? Is it ads?
In February 2016, Google briefly overtook Apple to become the most valuable company in the world – worth more than $500bn (£350bn).In 2015 alone, Google had revenues of $75bn (£53bn). That’s about £1,675 a second. Yet its core service – search – costs nothing to use. So how does it make all its money?In numbers: Google in 2015Source: Google 2015 annual report (submitted to US Securities and Exchange Commission)A way with wordsGoogle makes most of its money from selling advertising opportunities on the search pages so many of us use.Advertisers bid to have ads for their products or services displayed on relevant search query result pages. A combination of the amount bid and the quality of a potential ad influences if an advertisement will feature at the top of the page, where more users are likely to see it. In order to encourage efficient bidding practices, Google uses a Vickrey auction system. Bidders don't know their rivals' bids. When all bids are in, the highest bidder wins but actually pays the price of the second highest bidder.But that's not the end of it. Google also takes into consideration the relevance of the advertiser's landing page to the search query. For example, if an advertiser has a page which is all about car insurance, it would have to bid less to appear high up in the paid advertising results for a user googling "car insurance" than an advertiser who has a page on general insurance. Google calls this 'Quality Score'.Charging for every clickThe attraction of the service to advertisers is they can target advertising at Google users who have already expressed an interest in what the advertiser sells and ignore Google users who have not. This is known as contextual advertising. Furthermore, advertisers only have to pay Google after someone has actually clicked on one of the ads they bid to have displayed – and they can set budgets to limit their monthly spend.Released in 2000, Adwords remains the primary source of Google's revenue. But Google also makes money from advertising when you're not on one of its sites at all. Its Adsense network places adverts on partner sites – from blogs to major content publishers – with the search giant taking a share of the revenue.INTERACTIVE: Searching for profitsSince its launch in 1998, Google has grown enormously in terms of both its revenue and its expanding portfolio of products. Hold and drag the icon to see how this growth has unfolded.
How does Google Maps make money?
It's important to keep in mind that a good portion of Google products don't have any revenue. However, over the past year Google has been introducing ways for developers to embed ads on Google Maps via the Javascript API. Google also offers a service available to enterprises to pay for the rights to use the Google Maps API behind protected logins and intranets (currently against the free terms of service). In addition to all this, it's one more thing they embed into search results and show ads alongside of in search.
Why does Google earn so much money while Wikipedia has to run fundraising every year?
The answer to the question above would be the clear difference in the business model implemented by Google and Wikipedia. Google one one hand started with the search engine operations. These search operations evolved overtime to provide the firm with the worlds biggest database of websites and users. This provided an opportunity to the Google to use their current database by offering the firms as access to their target audience by direct channelising of the customers to the sellers by identifying what people are looking for based upon their need, income base, history of searches, age, location and many more parameters and variables. This business might seem to be a simple one but when you process 40,000 searches a second which translates to over 3.5 billion searches per day and 1.2 trillion searches per year you run one of the biggest business operations in the world. And including the business operations of YouTube(over 90k videos viewed per minute), Google products like Gmail, Google+, Blogger, Imagesearch, Docs, Drive, Adsense, Maps, GoogleAnalytics etc.. along with access to 80% of the world's smartphones, Android and ex-owner of Motorala (although it still owns the $4Billion in patents) you are not running one firm but a conglomerate of the internet. If you want to see how much Google generates through adveritsing through adsense, please find an image attached below: And this was back in 2011. Now talking about Wikipedia, it doesn't have a business model or one might say a it does have a Donation based Business Model. Despite the fact that Wikipedia is the world's largest online encyclopaedia with almost 3.3 million pages in over 287 languages with 22 billion active users makes it the 6th most visited website across the internet. For all this big statistical figures, it needs funds to support and sustain itself because it all the information accessible is all free. Wikipedia is managed by Wikimedia Foundation, a non profit. For sustaining a website such huge without relying on ads, subscription etc, is almost impossible and that is why it needs donations, asking for millions and millions of dollars more than they actually need, met by Donations and Government Grants.
How much money does Google make from YouTube?
Well, according to the business insider[1], they were not making any profit from YouTube. WSJ [2]reported video-streaming increased its revenue to $4 billion in 2014 from $3 billion in 2013, but it's still only roughly breaking even.The main problem behind the less revenue because most of the people watch videos on other sites (embed videos) instead of streaming directly on YouTube.But now I believe in 2019, they are doing and making much more than that for the following reasons:People stream more videos on YouTube than ever before.It is world’s number 2 popular websiteAds are everywhereThey allow creators to make money from subscriptions as well, which is distributed between YouTube and creatorThey launches YouTube musicNow, they have direct paid subscription where you’ll not see any adsAdditionally, they launching specific apps for different categories; Youtube games, Youtube kids, etc which is sign of more growth.Footnotes[1] YouTube still doesn't make Google any money [2] YouTube: 1 Billion Viewers, No Profit
How Does Snapchat make money?
Unlike Facebook, There is no Ads. whick makes it has no source for money. but how do they pay for employees, servers, taxes, and how does the creator has 2 billion? dont tell me that facebook pays them or something stupid like that, because it hasnt been sold yet
How does Tinder make money?
Tinder has been one of the most successful dating apps of this generation and is truly considered as a trendsetter. Founded by Sean Rad and Justin Mateen in the year of 2012, Tinder’s rise has been rapid, In just over an year Tinder has seen 100 % growth and by 2014 the number of users reached to 50 million.Initially, Tinder was a free to download dating app, Over a certain period of time they introduced Tinder Plus which is a premium model of its’ original version. Tinder Plus is a paid version with more success rate of matching profiles.The following are the other versions of it’s revenue generation models,Paid membershipsAdvertisingDigital giftingVIP membershipsPremium add-on-featuresReputed Blog: How Tinder Works and Makes Money?If you are interested in creating your own mobile dating app, have a free consultant here, https://www.agriya.com/products/...
Did Google really hire 4000 humanities PhDs? What work will they really be doing?
I'd be very surprised if Google didn't hire from humanities departments.Very few companies make money from writing good software, in fact the opposite is usually true. Microsoft sell rubbish, then upgrades that just make it poor. After a decade or so some non-Microsoft company launches a patch that makes it usuable.How does Google make money? Not from software. It has a world class search engine, but it it the clever and unobtrusive advertising that pays the wages.Googles biggest problem is that everytime it tries to diversify (Google +, Docs) etc. It makes world class turkeys.It really must do more to understand people.The classic group who are ignoring humanities are Facebook, who are doing everything to alienate people. I would worry about them more.Google need----a social network that people want to join. A way of directing people to advertisers that doesnt offend cultural sensitivities. Possibly a games maker. Some people who understand kids fashion and music. Apple became successful not because of design or technology: they turned phones into expensive fashion statements. A phone is a phone, Hardware hardly ever matters, it is the software that drives everything. If even one of the humanities department can make people believe you would have to pay to get Google 2014, this years search engine, or Google 2014S (with vague enhanced features like a colour palette, or Google 2014C (for con---it is actually Google 2013--but you pay for it), they should be paid their weight in Gold.
How does Robinhood (Brokerage) make money?
As of 2017 Robinhood’s business model is drastically different from when it started in 2013/2014, particularly after the inclusion of its Robinhood Gold premium subscriptions[1] .Officially, Robinhood’s revenue stream now comes from:Interest in uninvested cash sitting in user accountsRobinhood Gold subscription feesInterest on margin lending to Gold accountsAccording to their own FAQ[2] , they collect interest on uninvested cash sitting in customer accounts. Recently they’ve added premium Robinhood Gold accounts, which earn them not only subscription revenue, but interest from margin lending.The company originally planned to make money off of order flow, as is common with discount brokerages, but it backpedalled on the idea because it executes its orders through a clearing partner and receives next-to-nothing for order flow[3] . Of course if the situation changes (or maybe already has changed) there’s no reason to believe they wouldn’t go back to selling order flow.Footnotes[1] Introducing Robinhood Gold[2] How Robinhood Makes Money[3] How Brokerage App Robinhood Makes Money