Google is globally well known for its search engine. It provides high level of services to all users who seek information and resources. Besides global Internet search solution, Google also offers targeted advertising solution. This is the revenue model of Google.
AdWords
Google generates most of its revenue from Google AdWords. It is a pay per click advertising program of Google designed to allow the advertisers to present advertisements to people at the instant the people are looking for information related to what the advertiser has to offer. The advertisements are usually placed on the right side of the screen or sometimes above the main search results. The advertisers need to pay for their advertisements once the Google users click on it.
AdSense
AdSense is another advertisement application run by Google. Website owner can enroll in this program to enable text, image and video advertisement on the Google’s search result pages. Google generates revenue on either a per-click or per-impression basis. When a visitor clicks one of the advertisements, the AdSense publisher will share the cost-per-click advertisement revenue with Google.
Amazon.com is known as the America’s largest online retailer. It started as an online bookstore but soon diversified to product line of computer software, music DVDs, video games, electronics, and so on. Therefore, it is clear that Amazon.com generates the revenue through sales.Besides that, Amazon.com also generates revenue by transaction fees and affiliate fees. Amazon.com will charge transaction fees on the sales and also affiliate fees on those who advertise in the Amazon website.
eBay is an online auction and shopping website in which people and businesses buy and sell a board variety of goods and services worldwide. Besides that, eBay also owns PayPal and Skype.
eBay is very similar to Amazon.com. Both are using sales and transaction revenue model. eBay will gain revenue for every successful transaction. Besides that, PayPal can earn revenue through online payment. PayPal has gained users trust worldwide and has become a global leader in online payment solution.
Conclusion
Most of the revenues for Amazon.com and eBay are from sales and transaction fees. On the other hand, Google is earning from advertising the most. In conclusion, we can say that every company has their own revenue model.
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Google's advertising methods are successful from a point of view of a online user. This is because me as google user often click on the advertising link mainly due to curiosity. Sometimes the advertisements were presented at a strategic and eye catching spot which attract me to further look into it.