Revenue model of Google, Amazon.com and eBay

The main source of Google’s revenue is from advertising. For the 2006 fiscal year, the company reported US$10.492billion in total advertising revenues and only US$112million in licensing and other revenues. One of the revenue model for Google is Google AdWords which offers pay-per-click (PPC) advertising, site – targeted advertising for both text and banner ads. This program includes local, national, and international distribution. Google’s text advertisements are short, consisting of one title line and two content text lines. Whereas eBay is the world’s largest online auction site, is one of the best examples. For eBay the revenue model is online auction which is participants bid for products and services over the internet. Amazon.com started as an online bookstore, but soon diversified to vary product lines. Amazon.com was success in online-shopping.

Google AdWordsGoogle AdWords is allow the advertiser to present advertisement to people at the instant the people are looking for the information related to what the advertiser has to offer. In addition, for advertisers, with this you can easily reach people when they are actively looking for your product and services. PPC means that you only pay when people click on your advertisement and it is easy to control costs. Moreover, this enables advertisers easily to sign up and manage an account online.

Read information from Google Advertising Program and Google’s revenue model

For eBay, bids can be placed at any time. eBay auctionThis convenience increases the number of bidders. Moreover, sellers and bidders can participate from anywhere that has internet access. Because of the potential for a low price, the broad scope of products and services available, the easy way of access, and the social benefits of the auction process, there are large number of bidders.

Read article – Reasons to still love eBay

Amazon.com

Whereas for Amazon.com, is allows user to submit reviews to the web page of each product. They also have to rate the product on a rating scale from one to five stars. Moreover, the users are allows to comment on reviews. Amazon.com provides an optional badging option for reviewers to indicate that the reviewer is one of the top reviewers. Amazon is pioneer affiliate partnership marketing. An Amazon partner website can display Amazon books directly on their website, and sends customers to the Amazon’s website when the visitor is ready to buy it. In turn, Amazon pays a commission for the sale to the site owner.

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~ by chocolate1234 on June 12, 2008.

One Response to “Revenue model of Google, Amazon.com and eBay”

  1. PPC means that you only pay when people click on your advertisement and it is easy to control costs.
    >> Indeed not only the cost matters, I always more careful with the conversion rate and the list of keywords used to launch my campaigns.

    You can still be making profit with a high cost if the conversion rate is also high. In such circumstances, paying $1 a click is profitable.

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