How does Google make money?

The other day someone asked me how Google makes its money. At the time I called upon the knowledge I had and talked about the ads they have in the search results, the Chromebooks and Android systems they are selling, and Google Apps and Docs.

This week Google announced, it was disappointed with its 27% rise in revenues. Yes you read right, it was disappointed! Profits were up 6.4% and revenues 27%. In the same period, (the last quarter of 2011) Microsoft saw its revenues rise just 5%, and its profits fall by 0.15%!

Here is the interesting (weird) thing, Google’s share value fell 10% after the announcement, whilst Microsoft’s grew by around 2%! How crazy.

Anyway, this got me thinking, what are all the way Google makes money, as that is a lot to get just from the ways I mentioned.

How does Google make money?

The fact is, the majority of Google’s revenues come from the ads it presents to users on search result pages. However in recent years it has started making more and more money in other ways. So what are these other ways Google makes money?

Chromebooks

Introduced mid last year, Chromebooks are laptops powered by Google Chrome OS, where the laptop and the internet are one. There are no programs, desktop or start menu, the who experience runs from the cloud, utilising all Google’s (and other) online applications.The Google Chrome Logo

Samsung and Acer are the two firms which currently offer Chrome OS powered laptops, however expansion to more brands in the future is inevitable. Samsung and Acer obviously take their share the sales, as will Amazon and the other places Chromebooks are sold, however the laptops do make money for Google.

Android

I assumed that Google made money from Android, however I was wrong – Google does not make money from its Android mobile operating system. Android is a Google-led open source mobile OS framework, however Google does not profit from it.

Google Android's Logo

YouTube

Since Google bought YouTube in 2006, the site hasn’t been that profitable for it. YouTube is now the site with the third most traffic on the web, meaning that it has huge potential, however until recently, it was only making money from ads.

Before Google AdSense ads used to appear alongside videos, which they still do, however now they also advertise within videos too. Furthermore, YouTube have started offering online movies, which users can pay to watch from the comfort of their own home – or wherever they are.

Google Storage

Many Google services offer online storage, however this is only a finite amount. Should you want to purchase extra storage for Gmail, Google Docs, Picasa or Blogger (photos on blogger, not posts) then you can do so from Google Storage. I doubt this brings in Google a lot of revenue, but nerveless, it makes the internet giant some money.

Google Store

Google have an online store which distribute to may different locations around the world. They sell everything from branded keyrings and juggling balls, to t-shirts and even accessories with past Google Doodles printed on them.

DoubleClick, AdSense and AdWords

The majority of Google’s revenues come from the advertisers who use AdWords and DoubleClick. These ads are then either shown in the search results, or on websites which host AdSense units. Google makes lots of money out of ads. It doesn’t tell AdSense hosts what cut of the advertisers fees they get, but it makes Google a lot of money, so I would guess that they take home more than website owners hosting their ads.

Other Ways Google Makes Money

These are not the only ways Google makes money, other ways include, Google Apps for Business, Google Cloud Connect, Google Docs, Feedburner (through ads), Google Earth Pro, Google Mini (where you effectively buy the Google search engine to use on your own site/intranet), Google Checkout and more.

Hopefully this gives you some insight into just how many ways there are that the search giant that is Google makes money.

Are broadband speeds on the rise?

Many providers will be increasing their broadband speeds from 100Mbps to 120Mbps at the start of 2012, with an estimated completion date in mid-2013. The increase will be really good for customers in the UK, who are looking for faster internet speeds for both personal and business use. Faster speeds could boost the economy, as well as change the way households and businesses use the internet.

Giving access to a super-fast internet is all part of building a newer and improved economy in the UK. The government alone has set goals to expand broadband speeds within the next three years. By the end of 2015, investors predict fibre optic broadband will be available to two-thirds of the UK. Many providers are doing their part to support the economy, understanding that the internet is such an essential part of the everyday lives of their consumers. People are using the web to assist them in every aspect of their lives these days, so having a fast and reliable internet connection is important now more than ever.

Investors will be bringing even faster speeds to the UK. It is thought that around 300Mbps speeds will become available in limited locations within the next few years. Currently, many providers are trying to keep up with these investors by doubling their speeds, allowing customers to upgrade from 10 Mbps to 20Mbps. Those who subscribe to their highest speeds of 30Mbps will be upgraded to 60Mbps. Some providers aim to roll out the changes free of charge, so customers may be pleasantly surprised by the change in their broadband speed! Users will be able to benefit from streaming television, movies and music twice as fast as before.

An example of some optical fibre internet cablesThe increase is good news for the UK, which currently ranks somewhere between 10th and 40th globally in terms of average broadband speeds – depending upon where you get your figures. Once upgrades are complete, the average UK broadband speed could increase to around 16.46Mbps, a massive download speed increase!

Consumers will be gaining this speed boost at the most opportune time, since the highly popular Netflix, this week launched its service in the UK. Such services require high bandwidth speeds and will undoubtedly attract large numbers of costumers, all of whom will need super-fast internet to watch their favourite movies and television shows.

Are you doing your bit for the blog?

Yesterday Jonny, one of our authors, emailed me to let me know about the post he had written on the site he writes for (the Bassetti Foundation) where he wrote about the community awards he picked up, praised the blog and talked about and linked to the posts he has written for us.

Jonny asked that I promoted the idea of the community a little bit more through an article, which is exactly what I am going to do!

It is time for the poster again 😉

Technology Bloggers needs your help!The idea of a community blog is that everyone benefits. It’s in our slogan:

“Read | Contribute | Benefit
A whole community of technology bloggers”

The three keywords there are contribute, benefit and community. We are a community blog, designed in such a way that everyone is able to benefit.

If everyone is helping to improve the blog, the better the blog is, therefore the more we all benefit. Basically the more we all put in the more we all get out.

I really do try hard with this blog, I give it my all, and I feel that if we all did a tiny bit more (like Jonny has) we could make this blog so much better – and it is already really good! A better blog means more benefit for all!

Let me explain.

PageRank

If all of our readers, writers and commenters (I know some of you are all three!) were to write a post like Jonny’s, more PageRank/link juice would be flowing into the blog. This would increase the blogs PageRank overall – not that a high PageRank is anything to really fantasise about.

If the blog is of a higher PageRank, more flows back to all those commenters and writers who have links on the blog, therefore they get an increase in PageRank too – a benefit directly derived from Technology Bloggers.

Traffic

PageRank is maybe not the best of examples, so let me give you another example, using traffic. If you write about the blog, include it in your bio, tweet about it, post about it on Facebook and generally share it via all your social internet channels, then the blog’s traffic will increase.

More people (traffic) means more people reading the content, more people commenting, a bigger, better and stronger community, more opportunities, more articles etc. it also means that for those writers who are adding AdSense to their posts (like Alan) the chance of making more money increases.

More people means more articles getting read, so writers are getting better exposure/greater publicity. Commenters links are more likely to be followed etc.

Brand

Having a bigger, better blog and community, make Technology Bloggers a stronger brand. This means that your association with the blog is a greater benefit for you. Saying you are a writer for TechCrunch brings you a lot of credibility, due to your association with the strong brand, we can make Technology Bloggers like that too!

The bigger we get, the more everyone involved gets out of the blog!

You

So what can you do to help your blog? The answer? Help us by promoting the blog further. We have a great community here, loads of fantastic writers, writing brilliant content daily, so what we really want to do now is expand, and to do that, we need to help more people find out about us.

Why not tweet if you read an interesting article here, also, if you can +1 it, share it via Facebook etc. please do!

Why not tweet or post a comment like:
I am part of the great dofollow community over at Technology Bloggers (www.technologybloggers.org) why don’t you come and join me?
or how about
Why not check out the great dofollow community over at Technology Bloggers – www.technologybloggers.org?

Like us on Facebook, follow us on Twitter, share our articles!

If you are a blogger why not add us to your blogroll, or page of favourite sites? Why not add a link to us into your bio? You could even write a post like Jonny has done.

Here are some images you could add to your blog, or post via social media to help promote us:
Technology Bloggers - A Dofollow Community Blog a smaller version – more are available, just contact me 🙂Technology Bloggers - A Dofollow Community Blogshow off that you are part of the community!
I Am Part Of The Technology Bloggers Dofollow Community! www.TechnologyBloggers.orgIf I was a normal blogger, that might have seemed like a very needy plea for help to improve our traffic (which is already very respectable) however I am not, I am a member of a community blog. That is the difference, I am doing this on your behalf. You reading this are going to benefit (hopefully!) from this article, through the communities (that includes you!) response.

What are you going to do to help the blog? Let us all know below! If we get enough people writing about what they have done, I might write a post promoting those people!

Technology Bloggers – a community blog from which we can all benefit!