Google Makes 97% of its Profit Through Ads [Infographics]

You may well have wondered just how Google makes all of its money – sure, there are subscription services available, but so much of what the company has to offer is free to use – and now we know, thanks to research carried out by BestAccountingSchool. In 2012, the search made a staggering $33 billion, which sounds like a lots the moment you say it out loud, but break it down a little and the figure is even more breath-taking.

The profit lines mean that Google’s profit pot is worth more than the GDP of Panama, and is more valuable than the 31 poorest countries in the world combined. 70% of this income is made through AdWords which can be used to advertise through keywords.

The most expensive keyword is ‘insurance’ which sets back advertisers $54.31 per click, and the word ‘mortgage’ is not far behind at $47.12. Things are quite expensive for advertisers who choose to go down the adsense route as well; ads on CBS March Madness on Demand pulled in $70 per thousand clicks.

The money advertising can pull should not really come as a surprise when you consider that a large proportion of ads are linked to YouTube. The video sharing site was acquired by Google back in 2006 and has gone on to become the third most popular website online, delivering billions of money-making ads along the way.

And Google has a fairly captive audience. It now takes care of more than 83% of all web searches, and inline ads have become so ubiquitous we tend not to give them a second thought – they are just part and parcel of being online.

To see more details of the research, click through to view the full-size infographic.
How Google Makes Its Money

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