Thursday, February 23, 2012

Google AdWords

     Since Google is essentially free to us, its users, how does it make so much money and remain profitable? The answer is Google AdWords.  How it works and how to go about getting an advertisement can be found here.  The way I understand it is that a company pays Google to have their link at the top of a Google search result.  You can tell these are ads because they are usually the first few results, they have a shading around them, and it says "Ads" - easy enough to tell.  Anyway, different ads will come up depending on what you search.  If you are looking for a t-shirt, a t-shirt company's ad will come up.  Each time you click on these ads and give the company a visitor to their site, Google charges them a certain amount of money.  It could be up to $.50 per click, which seems like a lot if you ask me.
     What I love about these ads is first of all, it allows Google to be free to the user. Second of all, Google makes it pretty clear these are advertisements with the different shading around them and the warnings they give.  This makes it pretty easy for me to avoid them.  Yes, I realize they might have some stuff I am interested in but I know that what I am actually looking for is in the links that Google returns based on its algorithm, not the ones they get paid to return.  I am all for having Google be free, and I respect that these company's want to pay to have their links out there, but no way am I clicking on them.
     Another thing Google does is monitor these clicks to make sure it is not spam.  If the shoe company Finish Line wants to mess with their competitor Footlocker, they could have someone go out and click these AdWords links to make Footlocker pay Google.  Google actively monitors the links to make sure this isn't happening which surprises me.  They are going out of their way to make sure companies are not paying them too much money - seems way too fair to be the practice of a huge company like Google.  So basically Google is providing us with an amazing service for free, they sure are making enough money for themselves, and the company's can get their names out through AdWords.  Seems like a legitimate relationship with positives for all parties involved.

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