Question:

How do search engines make money?

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How do search engines make money?

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  1. Search engines always have advertisements, such as on google they're are ad's on the right hand side of every search.


  2. Most Web search engines are commercial ventures supported by advertising revenue and, as a result, some employ the practice of allowing advertisers to pay money to have their listings ranked higher in search results. Those search engines which do not accept money for their search engine results make money by running search related ads alongside the regular search engine results. The search engines make money every time someone clicks on one of these ads.


  3. Advertisements at the top when you search.

  4. When a user types in a search term within a search engine - two types of results are returned.

    1 - Organic Search Results - these are the classic 'best' results for the search term.

    2 - Paid Search Results - these are the ads at the top and down the side of the results page.  These results are clearly marked so you know they're advertisements as opposed to organic search terms.

    The search engine makes money when you click on one of the paid results instead of an organic result.  The cool part of search advertising technology is in how they determine which paid results get placed where in the paid listing.  

    The search engine uses a sophisticated 'auction' platform to decide which advertisers go where in the list - with the core logic being that the more you're willing to pay per click, the higher up in the list your ad will be listed - and the more likely it is that someone will actually click on your advertisement.

    Search engines also provide sophisticated analysis engines so advertisers - small and large alike - can determine what they're likely to need to pay in order to achieve the results they want.  

    For example - if you own a small used car lot in Chicago that sells only hybrid cars, you'd never be able to compete in organic search, since the big guys like Toyota, Edmunds, Autotrader, etc will dominate that space.  You could, though, create an ad that competes for the term 'used toyota prius' within the Chicago market (whenever someone in Chicago searches).  

    By using the ad tool, you'd find how much you'd likely need to spend per click to get listed at the top of the ad listings for that term.  If the amount seemed reasonable, you'd set a daily budget for that term - e.g. up to $50/day - and write an ad.

    Ultimately, this allows folks to get found in a search world that would normally pass them over or just never find them.  It also allows the advertiser to control the message in the ad to drive results.  

      

  5. from there advertising programs big companies pay google millions of dollars a day to advertise there companies

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