Sunday, May 14, 2006

Internet Economics - Google Advertising




I am sure you have heard of Google. It is the most famous search engine in the world.

Internet search engines are special sites on the Web that are designed to help people find information stored on other sites. They made our search for information easier

At Google, they provide an advertising function called "Adwords Pay per Click"

AdWords uses cost-per-click pricing, which means you pay only when people click on your ad. There is a nominal, one-time activation fee for Google AdWords.

The cost of per click starts from US$5 , that means if you have a website advertised in Google to sell something and someone clicks on your website, then Google will bill you according to the number of clicks per day.

Imagine people are clicking on your website, and before you start selling anything those people at Google will be laughing all the way to the bank.

One click..let's say US$10 per click ( and your website appears on Page 1 of Google search) , if there are 100 clicks per day, Google will be richer by US$1,000 in a few seconds...Imagine there are hundred of thousands websites advertised in Google..no wonder the founders of Google, Larry Page and Sergey Brin are billionaires.

2 comments:

Anonymous said...

now i noe...i was wondering before diz how does search engunes like yahoo and google make money...in this case,its the adwords...how bout the normal search??does it apply the same concept??pay per click...???
wizzerd??

David said...

er...other than adwords, Google provides "google adsense" too. My website use to have this google adsense ( place those google client's advertisement in my website) ... and if u click the advertisement i will get paid. The cost per click is from USD 0.01 to USD 0.20... thats wat i got last time...

but actually, i'm cheating google...Google did mention that Admin is not allow click the advertisement, but my fren and I keep on clicking it everyday. till my accounrt reach USD 30++... with another about USD 10++ to go, i will get a USD 50 cheque.

Unfortunately, My account was suspended... Haih...