How Does Google Earn Money from Ads?

How Does Google Earn Money from Ads?

Even if you don’t know exactly what Google ads are, you probably see them on a daily basis and they bring in big revenue for the search engine giant. Here is a quick breakdown of how and where Google sells advertising space and uses this to earn money.

Google Sells Ad Space on Search Properties

When you visit Google and type in your search terms, it will populate search results. At the very top of the results page, you will see a link followed by a green line with the actual URL. In front of the URL will be a “Ad” symbol. This indicates that that website has bid in an auction and essentially paid to have their address appear first. 

 

Keep in mind that Google still evaluates the relevancy of each page and won’t put unprofessional and uninformative pages at the top, no matter how much you are willing to bid on keywords. 

 

The auction process is simple: advertisers bid on how much they want to pay for a click on their ad. The winner gets the top spot and the second highest bidder is listed second and so forth. 

Google Sells Ad Space on Websites

As you visit and scroll through different websites, you may notice little ads in the sidebar or as a banner across the top of the page. Websites work to bring people to their website and then they sell ad space on the page to companies who want to advertise their goods or services. 

 

Google is able to streamline this process by acting as the middleman and brokering deals between websites and companies looking to valuable advertising space. Typically, Google will purchase the advertising space and then sell it to an advertiser for a higher amount than what they paid. In this way, they are able to make a profit off of the difference.

How to Advertise with Google

As an advertiser looking to gain more online visibility, you can create a Google AdWords account and begin to take advantage of the tools, resources and reach that Google offers. AdWords makes it easy to identify keywords that are important to your industry and your audience and create ad campaigns. You can even set a daily budget so that you can control your spending. 

 

Keep in mind that you will want to track your ad performance and make adjustments as necessary. To learn more about AdWords best practices and how to get started, use this guide

How to Sell Advertising Space on Your Site

If you have a high-performing website and you are willing to sell some space, you need to start an AdSense account. This tool is specifically for publishers. AdSense will scan through available ads and display options that speak to your audience and are relevant to your content. The amount you will get paid per click will vary. Just remember that the more visitors you can bring to the site, the more clicks you are likely to get and the more money you will earn for your advertising space. 

 

Visit the AdSense resource page to learn more about how to get started.

Takeaway

While Google earns money from selling ads, you can also take advantage of these tools to increase your online visibility and show up in adds on other websites that your target customers tend to visit. If you would like to get started with Googel AdWords or AdSense, contact Yael Consulting today. We can create and/or manage your accounts to maximize results.

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