The concepts behind things like Google and Youtube fascinate me. Can someone explain to me why these businesses generate multi-millions in revenue every year?
I know Google has a few adds here and there that might pick up a few dollars but multiple millions on top of millions? I don't understand.
And how does Youtube work? I'll admit I'm as business savvy as a swamp rock but I can't understand how Youtube is such an enormously valuable company (or part of Google now, w/e). They aren't selling anything, why are they worth so much?
I'm totally stumped, anyone care to enlighten me?
2007-03-02 06:43:21 · 2 answers · asked by WhooHoo! 2 in Business & Finance ➔ Other - Business & Finance
ok well heres how it and most free internet things work: ad space. They do liked things (such as interent searches or video uploads) for free to generate high traffic on their sites, then sell ad space, usually in the form of banners, to companies who what people to know about their products. Its the same way tv works
2007-03-02 06:57:21 · answer #1 · answered by Ryan H 2 · 0⤊ 0⤋
It's all about the advertising. Just like television, they make their money through selling ads. Those banners you always see cost big bucks on sites like those. Even though these sites are completely free to users, companies will shell out the dough because they know that these types of sites get so many hits per day. I mean, we're talking Superbowl-type prices for these ads.
2007-03-02 14:55:19 · answer #2 · answered by Adam L 1 · 0⤊ 0⤋