Google posted it’s financial results recently and it made a very large amount of money from ads.
It is reported that they made $US27 billion ($35.7 billion) in ad revenue in just the last three months. That’s $US300 million ($396 million) of revenue every single day, or around $US12.5 million ($16.5 million) an hour every hour. The reported number of paid clicks on Google Ads is increasing fast. Paid clicks on Google Ads were 59 percent higher than the same period last year. The Californian company saw $US31 billion ($41 billion) in revenue come in during January, February and March, and costs were far lower. When all was said and done they made $US10.4 billion ($13.7 billion) in profit before tax.
What does this all mean for you? First of all, it means that when you click on an ad in a google search, the person who is advertising gets charged for it. And it means that Google tracks your clicks for more marketing in the future.
Google also serves us ads in Gmail and in YouTube (owned by Google), and also includes ads on lots of other websites that are provided by Google. Any time YouTube ads play without hitting skip, Google receives a payment. Video ads are more lucrative than text ads, which is one reason the internet is now full of video streams.
It is important to be aware that Google is recording your search history when shopping or researching your next purchase. It is doing this to serve you the best ads possible. Google Ads are then set to your search feed and other locations to entice you to shop with their advertisers. Most of the time they get it wrong, but when they get it right, we are all likely to click.
Advertising in Google is here to stay and is not set to change anytime soon. However, it is important to be aware that your search activity is being monitored to send you relevant ads. And when you click on the ads, the advertiser pays.
Have questions about your online activities; feel free to get in touch with any questions. We are always happy to help!