How Google & Facebook making money



Now most of the people are regularly using Facebook & Google as part of their life. Searching in google & sharing with Facebook friends are something like an unavoidable thing in a daily life. Recently some of my friends asked me about how these websites making money & how they are running.

Here I am going to explain about that.

It simple bot these websites making money mainly from advertisements ( selling ad slots ).

Google money making method :

When you searching o google, you can notice that there will be sponsored ads on top and side bar of the search result. The same ads can be viewed in several websites which are using google adsense code. Advertisers are using google adwords product to place their advertisement in google search and their associated website.

If you are an owner of a website or a business , you can promote your business by using these program. For every click on your advertisement Google will charge from the advertiser. This is the income part of Google. There are thousands of advertisers with Google. And from the heavy traffic of Google search & YouTube & other associated websites they are making plenty of money.

In 2012 google made around $46,039 million income from advertising.

You can learn more about by visiting their adwords website

Here is a sample income statement of Google

google-income-report

Facebook money method :

Facebook also using the same method as google. When you use Facebook, you may be notices several sponsored ads or pages or products on your right side bar. Those ads are provided by several advertisers and facebook getting money when you click on any of those advertisement.

Here is a sample income statement of Facebook from their official website

facebook-income-statement

See their advertisement link for more details