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Google's original objective is simply to create a search site that can help people find useful information on the website. They did it, and it has been proved by the 250 million queries per day through Google.com. When Google started, they had three new ideas: index more of the Web, use links to rank search results, and have clean, simple web pages with un-intrusive keyword-based ads.

The success of Google largely depends on its Contextual Advertising, which is mentioned above as un-intrusive keyword-based ads?Contextual Advertising means that the advertisements placed on the website is related to the contents of the website. The resulting effect of the contextual advertising is that Google put users right before advertisers, even though the advertisers are paying and users aren't. Another reason for Google’s success is that Google also finds channels for propagation and exposure of the Ads. One of the channels is its own google.com, and another one is a lot of small websites on the internet. Those thousands of websites combined form the so called The Google Network.

Since its IPO in year 2004, Google’s performance is far exceeding the expectations from Wall Street. Below is excerpted from Google’s 1st quarter and 2nd quarter, year 2005 report:

(1st quarter)

…“Google-Sites Revenues - Google-owned sites generated $657 million or 52% of total revenues. This represents an increase of 116% over the first quarter of 2004.

The Google Network - Revenues generated on Google’s partner sites, through AdSense programs, contributed $584 million, or 47% of total revenues, a 75% increase over the Network revenues generated in the same quarter last year.

TAC - Traffic Acquisition Costs, the portion of revenues shared with Google’s partners, increased to $462 million. This compares to total payments to partners of $271 million in the first quarter of 2004.”

…
(2nd quarter)

…“Google-Sites Revenues - Google-owned sites generated $737 million or 53% of total revenues. This represents an increase of 115% over the second quarter of 2004.

The Google Network - Revenues generated on Google's partner sites, through AdSense programs, contributed $630 million, or 46% of total revenues, an 82% increase over the Network revenues generated in the same quarter last year.

TAC - Traffic Acquisition Costs, the portion of revenues shared with Google's partners, increased to $494 million. This compares to total payments to partners of $277 million in the second quarter of 2004.”…

The Google’s 2nd quarter revenues in year 2005 totaled a record $1.384 billion dollars,among which 99% are coming from the advertisement revenue, 53% from Google.com and other 46% the second channel. In another words, the second revenue channel generates $630 million revenue. How many percent of the $630 million dollars have been paid to the second channels-those hundreds and thousands of websites on the internet? According to the quarter report from Google, its traffic acquisition costs (TAC) are $494 million in the first quarter of year 2005, which support lots of websites and the number of the websites being paid through the Adsense program increase very fast. The table below compares the reports for the 1st and 2nd quarter of year 2005. The 9% increase of the Traffic Acquisition Cost means a lot of opportunities for those who want to own their own websites, and to make money with their websites.

The question for you, our potential customers, is how much you can and you do want to get from these $494 million?

What are you waiting for? Call us at (425) 354-4070 or email us at sales@brcwww.com. We can

~ design your website
~ host your website
~ optimize your website
~ enable your website to make money for you

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