Since we’re talking about possibilities today, may I ask you: Is anything even impossible these days? Technology is making rapid advancements, science is pushing boundaries, and the world has witnessed breakthrough after breakthrough. It is not just a question whether something is possible anymore; it’s a question of “how” it is possible.
So, YES advertising on Google is possible. Although Google is generally a free service to use, the search engine I mean, they still have to be creative with how they generate income. Otherwise, they won’t have enough funds to run their entire operation. If you’ve seen “The Internship” before, you’d understand exactly what I’m trying to say here.
Google is a very big company. It capitalizes on making things possible, especially in the digital world. Today, they stand as the biggest and most successful search engine of all time. You don’t even want to know how much they make annually. But I’ll tell you anyway. In the fiscal year of 2017, it was a whopping $110.8 billion. You must be wondering where all of this money is coming from. After all, the company generally offers its main services as a search engine for free.
All the income they generate comes from “other sources.” Google is not just one company that provides search engine services; it’s a group of companies. They have evolved and innovated to provide various other services. They have Google Play, Drive, Sheets, Docs, and many others. They also have shares in various big companies which give them competitive advantage in the world of business. To see a list of some companies this ginormous company has managed to acquire, check this: https://www.investopedia.com/investing/companies-owned-by-google/.
To date, Google is dubbed as the “King of Search Engines” as it is obviously the most popular search engine all over the globe. People even sometimes use the name of the company interchangeably with “search engine services.” They would casually make remarks like:
“Can you Google this brand of shoe?”
“Just Google it if you don’t have any idea what it is.”
“Please Google the instructions.”
What they really mean to say is to “search” for something. This is when you know that a brand has made a very strong impact on people. They start to replace the generic term for a product or service because they are so widely used that people recognize them instantly. We also say things like “Get some Kool-Aid” when we really just mean juice or “I’d like to drink some Coke” when we really just mean soda or cola. When a brand has seeped into society so much, they begin to replace generic terms and that is proof that the branding efforts of that company is working. To see a full list of brand names that were once/is trademarked but now used as generic terms, click here.
Google is not any different. And because their services are generally free, they have easily captured the hearts of netizens. Now, Google is the go-to search engine of the majority of people living on planet Earth. And because of successful branding, the company has been raking billions annually. Read on below to understand how this is all possible.
How Is Google Making Billions Per Year?
The company may not be able to profit much off regular users directly but indirectly, this large audience gives them a lot of leverage when it comes to dealing with other businesses. As you may already know, businesses thrive online. This is why many go into e-commerce, both established and new companies. Even businesses that have existed for decades offline are now migrating online. This is largely because of the terrific attendance of users the online world has.
Since Google is by far the biggest and most widely used online service in existence, businesses try to utilize the search engine to manage their own online presence. Google, in turn, sees this as an opportunity to profit. Since their search services are given to the people for free, they took advantage of the fact that they have excellent traffic to encourage e-businesses to sign up for their other, paid services. Google AdWords is a very prominent example.
What Is Google AdWords?
When companies appear on top searches more frequently, they tend to get higher profits. For most establishments, imploring common digital marketing methods like SEO and email marketing help them rank higher. But for bigger companies with more budget, they try to increase their online opportunities by making the most of what digital marketing has to offer. Google AdWords is a service that allows businesses to take up the prime spot in search engine results in exchange for a certain fee per click.
When a certain keyword performs really great (according to search engine data), Google puts it up on auction in AdWords. Businesses then have the chance to bid on the keyword. If they are successful with the bidding, their website is guaranteed to show up in the first page search results whenever the keyword is mentioned in a user’s query. When a user clicks on the website through the ad link, a certain fee is accosted to the company who owns the keyword. You can monitor your ad activity by using tools like Google Ads report. This fee may vary from $1 to $2, or sometimes higher depending on the factors involved.
One such factor is the company website’s quality score. If your website has received recognition from Google for being a high-quality resource already (this means that your authority level is considerably high), your bid will most likely win in AdWords. Google may even lower the pay-per-click price for you since your website deserves the spot anyway. In the same way the keyword may cost you more when your website isn’t as well-established and recognized.
The bottom line is that you’ll get a great boost in traffic when you bid for a keyword in Google AdWords. You still have to weigh whether the costs will be worth it though so you have to make sure you have a great product.