Explain how google makes money through advertising

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Reference no: EM133948634

Assignment:

Google Charges More Than Twice Its Rivals in Ad Deals, Unredacted Suit Says

Topics: Advertising, Business Models, Digital advertising

Summary: Google takes a cut of 22% to 42% of U.S. ad spending that goes through its systems, according to a newly unredacted lawsuit by state attorneys general, shedding new light on how the search giant profits from its commanding position in the internet economy. For a related article see "Google Profit Nearly Doubles On Supercharged Ad Growth".

Questions:

Explain how Google makes money through advertising. That is, who pays Google and for what?
What allegations are the state attorneys general making against Google? What law(s) is Google allegedly breaking?
Explain how Google has managed to extract such high margins out of its advertising exchange compared to competitors.
Why do advertisers rely so much on Google's advertising exchange?

Reference no: EM133948634

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