How Does Google Make Money?

In case you did not already know, Google makes almost all of its money (about 97%) from selling advertising space through Google AdWords on the top and sides of search results and Google-owned websites. The Google AdSense network only amounts to a small piece of the overall pie. In 2009, Google reported $24 Billion in gross revenue and net revenue of $18 Billion. That is a nice chunk of change. The website Silicon Alley Insider put the revenue data in a nice graph so it is easy to visualize.

Google Revenue Chart

I will soon follow up this post with an explanation of some of the questionable practices Google uses within their AdWords system in order to make their massive profits.

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