The reign of the PPC

Have you ever wondered why the Google search engine is so popular? Why do most people use Google to search for specific products or services? The answer is simple! Google offers a smart, comprehensive and technologically advanced search option that has been able to live up to most people’s expectations. What the Google search engine has really done is provide fast and relevant results for every search query given by an Internet visitor. In an age when time is money, everyone is looking for relevant information to be made available at the click of a button. This is exactly the reason why Google owns 50% market share for online search.

Today Google has reached a stage where their market capitalization stands at 142.58 as of April 1, 2007 and it has been out there for not more than a decade. But where does Google actually generate its revenue from? Google offers Gmail for free, it also offers website analytics, and web searches for free. So where does the money come from? Google generates its revenue from advertising. 95% of Google’s revenue comes through online advertising especially the pay-per-click advertising medium. The pay-per-click advertising consists of Google Adwords and Google AdSense.

Google Adwords is a key player as it helps businesses to get more Internet traffic and generate revenue by taking their advertising campaigns to the masses. Google Adwords can be compared to a normal auction where businesses bid on keywords, which are relevant to their industry. The business who bids the highest gets to maintain a high Click through Rate (CTR) and also appears at the top of the Google search page. The lower you bid, the lower will be your placement on the Google page. The role of Google is to monitor your ads but only you can choose how much you would want to pay per click. You will be charged only when a visitor click on your ad.