The answer for certain websites like amazon.com or ebay.com or playboy.com is very obvious. They provide a service through internet and they charge money for the service done.
But websites like orkut or facebook or google search do not charge for the service they offer, instead they mainatain loads of data (obviously a lot of crap) for free. Do these websites get money from what you pay (The monthly bill you get) to your Internet service provider? The answer is a straight No. Then where do they get money from? The answer is through advertisements.
The actual question is why is google earning more than the remaining advertisement companies.The simple answer is its policies and its eficiency. But, its not as simple as it seems. The clients pay the advertising company(say google adsense) for every landing on their website,i.e., for every click on their ad placed by this company. The number of clicks on the client website increases the publicity of the website. Obviously out of such number of clicks the client may get benifited by few transcations.
The task of the advertising company is to place the ads in such a place where most of the users find it when they want it.Then google started showing ads in the form of sponsored links in the search results.These sponsored results appear at the side bar or at the top of the search in a different colour. However, the remaining result is shown as is. But there are cases where the user is interested in some product only if its shown to him(i.e. he has no need to search for it) , or he is completely unaware that such kind of service exists at all. Then he would not search for it and google wants to display only relavant ads to the user.In other words the user doesn't like to see an ad of shoe polish while searching for toothpaste.
Then came the adsense, in which google pays- a part of what it gets from its clients -a user for displaying ads on his blog, a maximum a user can get for his interests. And here comes the role of efficiency where google has to display the right ad which the user might be interested in. That is adsense words. The ads are displayed according to the content on the blog. Thus the rato of transactions to the number of landings on the webiste of the client raises, giving him a good opportunity to showcase his products to a wide audience and getting returns for the investment he has put on ads.The one displaying ads is also paid(indirectly, google has hired these people) and so he strives a lot to publicize his blog and mainatain it with more interest. Blogging can no more be called a waste of time in any case.
It is the policy of google that makes the client to go for it.The client pays for the number of landings on his website.The user can click on the ads repeatedly and get some bucks.Google is very strict about such people. It also moniters where the clicks are coming from and if more clicks are from the same IP address the user is forbidden from using adsense anymore.
This involves a lot of continuous work by google and they are the leading advertising company with more places to display ads the space is increasing day by day.
The other websites earn money by placing ads on their homepage or other pages.Orkut also displays ads after the user logs in, however it is a service provided by google which might later land you up in using their other service, adsense.
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