When you go to Google, its page shows a quite simple design. In fact, the thing you will notice right away is that little search box in the middle of the page:
Once you input a search from “how to tie a tie” to “how to make a cake” in less than a second Google will spit out results which are relevant to the search you made. That is called a Search Engine Results Page or SERP!
The SERP is the most valued asset of Google. In fact, while for a traditional company the most important assets are the once that you can touch. For tech companies like Google, the search box and the SERP are the assets that made the company worth over seven hundred billion dollars!
Indeed, once you get results on the search engine page, Google will monetize it in two ways. Etierh by showing you targeted advertising. For instance, if you look for “course online” you will see as first results on the Google‘s page the sponsored advertisings like the one below:
You will recognize it because it will have the little “Ad” caption next to the search result. When you click on that term, Google will make money based on the value of the keyword. In fact, a keyword like “online course” can cost as much as $7 per click. Thus, each time you click on it Google will generate a profit.
Also, in the results, you get Google will also show you pages that are not connected with paid advertisements. However, once you land on that site chances are you’ll find little banners just like the one you see on the right side of the page below:
Those are banners placed by Google on partners’ website (through the AdSense program) that allows sites to monetize based on two metrics: CPM (cost per thousand impressions) or CPC (cost per click).
Once you navigate through the site, Google pays a little fee to the partner’s website. If you click on that banner, you allow the website to monetize based on the keyword bidden. Usually, Google gets 1/3, while the remaining 2/3 goes to the partner’s site.
Considering that each day over gives a billion searches go through Google. Imagine how valuable that is the SERP. Actually, there isn’t much to imagine. In fact, numbers don’t lie. If you look at Google‘s income statement for 2017 you can see how much money it makes from advertising networks through its SERP:
In 2017 alone, more than 95 billion dollars in revenues were generated by Google‘s advertising networks (those, of course, also comprise YouTube).