The main source of Google’s revenue is from advertising since Google is adopting advertising revenue model, where a company provides a forum for advertisements and receives fees from the companies that advertise their products. For the 2006 fiscal year, the company reported US$10.492billion in total advertising revenues and only US$112million in licensing and other revenues. Google advertising revenue model includes Google AdWords, Google AdSense and Google Answers.
Google AdWords is pay per click advertising program of Google designed to allow the advertisers to present advertisement to people who are looking for information related to what the advertiser has to offer. Revenue is generated on a per-click advertising (having maximum amount pay per click) or placement targeted advertisements (base on CPM or CPC) for both text and banner advertisements. This program includes local, national, and international distribution. Google generate most of the revenue from Google AdWords.
Google Adsense is an ad serving program which enable text, image and, video advertisements on websites. Google AdSense includes Adsense for search and AdSense for content. Revenue is generated on a per-click or per impression basis. Besides that, the most latest is called Cost-Per-Action, was revealed via an invitation e-mail to the web site owners.
Google Answer was an experimental product for users to ger help from researches with expertise in online searching.
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Read more information: Google revenue models , Google advertising program
Amazon.com's revenue model:
Amazon.com is an e-commerce business which generates revenue primarily by selling books, videos, electronics, and kitchen equipment on domestic and international Web sites, such as Amazon Marketplace.
Amazon.com is a pioneer of using affiliate marketing and nowadays it having about 40% of its sales is from affiliates and third party sellers who list and sell goods on the web site. Affiliate revenue model is a method whereby a company receives commissions for referring customers to others web sites by using CPM (cost per thousand impressions), CPC (cost per click) and CPA (cost per acquisition/action). Amazon Kindle is a software and hardware platform which is developed by Amazon.com web site.
Read more information: Amazon finally click
Ebay's revenue model:
EBay inc. is the world’s largest online auction site originally called Auction Web. EBay's mission is to provide a global trading platform where practically anyone can trade anything and it main source revenue is from transaction fees.EBay generates revenue from a number of fees. There are insertion fees, promotional fees, and final value fees.
- Insertion fees: Nonrefundable fee is charged when an item is listed on Ebay.
- Promotional fees: Fees that charged for additional listing options that help attract attention for an item, such as highlighted or bold listings.
- Final value fees: Commission that charged to the seller at the end of the auction.
EBay also generate revenue by charging a 15% commission on the complete sale. Beside that eBay also own PayPal, Skype, and Half.com.
Read more information: About eBay, About eBay Business, Reasons to still love eBay
Other related information: EBay vs Amazon.com, eBay vs the Google Juggernaut
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