In 2005 Google’s revenues were over $6 billion on which they earned about $1.5 billion in net income. In a short time Google has increased its market value to over $110 billion, in the same league as Cisco Systems, Nestle and Coca-Cola. How does Google make money?
Google makes most of its money by selling advertising. In 2005 Google had revenue of $6.2 billion and over $6 billion came from the sale of ads. And they did it by selling ads which cost a few pennies to a few dollars per click.
If the average cost per click is 25 cents, Google received about 24 billion ad clicks in 2005. That works out to 60 million paid clicks or $15 million per day of paid advertising!
The ads you see on the Google search results page are not their only ads. Their ‘AdSense’ program allows webmasters and site owners to place Google ads on their sites and earn a percentage on every click. There are reports that some web site owners have earned more than $1 million per year on Google ad clicks.
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