If Google is free, how does it make so much money?

If Google is free, how does it make so much money?

Last year Google created £2.5bn within the GB. therefore however will an organization create most cash once it looks to supply all of its services for free?

How Google makes billions from you

Google is Associate in Nursing advertising company and its biggest product is you, the user. the corporate controls nearly ninety per cent of the search market within the GB, and nearly ninety six per cent of Google's revenue still comes from advertising.

Every day the positioning returns one billion search results globally and serves up billions of ads aboard. the key to success is within the scale of its operation.

The main product is its large pool of users and intensive information concerning however they behave on-line. This information is employed to match firms with potential customers, serving up ads that users area unit additional seemingly to require to click.

Your on-line habits from YouTube, search and Gmail area unit all accustomed profile your behaviour. On prime of this, Google follows your surfriding habits through its Analytics and Adsense codes, embedded on websites to trace your interests outside of search.

Targeted advertising

Companies use Google AdWords to possess their results exhibited to specific audiences, due to the search engine's advanced algorithms. AdWords may be a value per click service, therefore if you are doing not click a link then Google doesn't create any cash directly from your search.

AdWords brings in roughly seventy per cent of the company's advertising revenue. In 2011 the highest sectors advertising were finance, insurance, retail and travel and therefore the most costly search terms were insurance, loans and mortgage.

Google's AdSense permits advertisers to hitch its network and show ads on its web site. an outsized variety of stories websites within the GB use this service, therefore after you go browsing to scan the headlines, Google makes cash and learns additional concerning your browsing habits. show advertising is sometimes charged at value per page impression, as a result of the massive volume of on-line traffic ads is commonly sold-out cheaply at a price per thousand impressions.

Trusted whole

But Google isn't simply a look business. It provides maps, cloud computing and documents, email services and a social network. These services area unit expensive  to run however facilitate to draw additional users in, build a trusty whole, and gather additional very important information concerning users.

Google is anticipated to form $3.6bn from YouTube this year as traffic continues to grow and additional pre-roll video ads area unit displayed. however the corporate is additionally sharing wealth with users UN agency post widespread videos taking in six-figure payments. YouTube has conjointly branched out into a movie "rental" web site in direct competition with Lovefilm and Nexflix.

The company dominates the mobile market, licensing out its humanoid OS for free of charge, however creating an outsized exploit the venture through search traffic, show ads and a proportion of each Play Store sale.

Collecting user information

Google's browser Chrome holds a thirty per cent market share, permitting the corporate to get search queries while not having to share revenue, as is that the case with Firefox and campaign. Chrome provides valuable information concerning browsing habits for the corporate, Associate in Nursingd has been delineated  it as an "exceptionally profitable" product.

All of this information assortment has left some customers feeling nervous. however with Google's dominance of the online, it is laborious to flee the company's reach. Google even collects info on the precise location of users, exploitation Chrome and mobile devices.

Google assure users that it anonymises any collected IP addresses when 9 months, and cookies in search logs when eighteen months, oral communication this "strikes the proper balance" for privacy considerations.