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.

Why a presence on Twitter can be good for your business

Before I start out, I want to clarify that it’s not a crime not to be on Twitter or any other social media platform. Before Facebook and Twitter, businesses still found many innovative ways of marketing their products and services. But, the whole idea of making use of social platforms such as Twitter to promote your business is to leverage their ever growing popularity for business benefits. The platform is there, you only have to use it. What could be simpler!

What you are trying to do is transfer a minuscule of the popularity of Twitter to your business.

If that’s not convinced you enough to get your business on Twitter, let’s see how a presence on Twitter will be a big step forward for your business.

Better Business Visibility

Better Business VisibilityThis is a no-brainer. A business profile on Twitter will give your business improved visibility, which in turn means that it will be able to reach a wider audience.

What’s more, this is an automatic benefit of having a Twitter presence. One of the better ways of making optimum use of your Twitter presence is not including your business website link in your profile, but creating a Twitter centric landing page, for all those people who have found your business through Twitter. This will ensure better lead generation.

Gain Strategic Intelligence

Your business cannot do without being nimble footed. If your business is not in tune with the latest happenings in its niche, there is a good chance that it won’t be able to compete with the other players in the market.

A Twitter presence allows you to gather competitive intelligence by monitoring the tweets made by your competitors. You can track their latest developments and any happenings that you can exploit for your benefit.

Managing your Online Reputation

When it comes to business, reputation is everything. Any loss of credibility will be immediately reflected in its sales figures, so you need to be able to manage its reputation in totality. Here, we are looking at its online reputation. Twitter helps you manage it, because news breaks extremely quickly on this platform; and there is a good chance that your customers are going to use your business’s twitter network to give feedback about your products and services.

So, you will need to monitor the tweets about your products and services, to rectify any flaws in them. This goes a long way in minimizing the damage to your credibility.

All in all Twitter is a great way of ensuring better public relations and generating brand awareness, enhancing brand credibility and improving brand recall.

Your presence on this platform helps you engage with potential customers and also interact with existing customers. This one-on-one improves credibility and generates a favorable reputation for your business. All this isn’t something that your business can afford to miss out on.

If your business is not on Twitter I believe that you are doing it a disservice.

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.