How does Gmail makes Money?

Abinaya Arangarajan Abinaya Arangarajan
Aug 24, 2021 5 min read
How does Gmail makes Money?

Every business generates services in order to get some sort of revenue. From a small business to a large industry, they all work for a single goal and that is Revenue. Likewise, Gmail also generates its revenue via rendering some services to the uses.

Gmail plays as a business tool in the collection of data as it aids advertisers to ameliorate their ads in an ingenious way to bring quality out of it. Factually, more data engender more income to Gmail. The second way to earn, Gmail campaign personalized ads like contextual inbox ads within Gmail.

Besides, Gmail also makes money out of generating GSuite subscription for businessmen, that helps to allow custom domain emails. People may wonder, how does data represent income to Gmail? When you sign up for Google email services by accrued on all Google's terms and conditions. Ultimately your data has been stored in the Google Dashboard and those data are required to keep their business running.

How does Gmail makes Money?
Pros and Cons of Gmail
FAQ

How does Gmail makes Money?

Gmail, a Google offered service mainly generates revenue by using its platform for personalized advertising for companies through advertising agencies and it shares user data to provide relevant ads according to the search and likes of the users.

Advertisement contributes to the revenue of the company predominantly. Gmail also earns through GSuite Subscription. It is used by businesses and professional bodies and institutions to create custom domain emails.

Businesses per se seek Gmail as their revenue source, where they pitch their products or brands to audiences. Gmail earns every penny by running personalized ads that emphasize highly user’s interest and track their activity across the web; Therefore, Gmail establishes pertinent advertisements according to the users.

Furthermore, Gmail makes literally 120 million dollars per day from these three activities-

  • Displaying personalized ads
  • Share data to deliver relevant ads
  • Drive businesses to subscribe to GSuite for custom domain

Gmail displays personalized ads

Gmail Advertising
Gmail Advertising

Ever searched for a product that you wanna buy and your Google and Gmail is filled with advertisements related to the product. And Google earns by displaying those targeted ads.

Have you heard of Google Adsense? Google Adsense is a program released by Google in June 2003. It provides publishers with a way to earn money through their online content by matching ads to the site based on the content and visitors. The ads are created and paid for by advertisers who wish to promote their products.

While users sign up in Gmail, they permit Google to use their data. Google uses this data to show targeted ads to its users using Google Adsense. Gmail sends customized ads to the users’ inboxes based on the types of newsletters and emails subscribed by them.

Gmail earns when a user clicks the ad that is being marketed. Advertisement revenue is high due to the large number of users on the platform.


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Share data to deliver relevant ads

How many of you have clicked the β€œAgree to terms and conditions” box without reading them while creating your Gmail account? Definitely everyone. What we are essentially allowing is Gmail and by large Google is sharing our data with them. Personal data is the emails you send, the regular emails that you receive from your contacts and includes the people in your contact list too.

By accessing your data, Google can know your preferences and dislikes, send ads accordingly, and gain higher revenue. But Google also gives its users the option to opt-out of such ads and sharing of personal data for targeted ads can be discontinued.

GSuite Subscription

GSuite tools
GSuite tools

Gmail earns through GSuite Subscription. GSuite subscription is a subscription plan for companies and professional institutions. Using GSuite Subscription, the company can use larger storage space and have customized email logins. They have access to all office applications. GSuite can be subscribed by making a monthly payment for every user. The standard price is USD 6 per user per month.


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Pros and Cons of Gmail

Pros:

  • Gmail account is mainly created to use any Google services like for installing a game or signing up for YouTube with a Gmail account.
  • Businesses have been gained much in the field of Gmail, by running personalized ads. Moreover, businesses can track down customer’s interests and work on it, to capture as much as customers to their business by rendering services which is favourable to them.
  • Low-cost services, as Gmail offers valuable email management features to the users. Business finds Gmail as their source of revenue, as Gmail runs personalized ads to track users.
  • Gmail is highly integrated within the Google ecosystem, and there will be no delude activity

Cons:

  • While Gmail underscores highly on data collection, repercussion concerns on data monopoly and data privacy. Hackers may penetrate crucial data as leads to leakage of data privacy.
  • Zoho mail has offered multiply features such as bestowing lower-cost custom domains to businesses and competing with Gmail.

Conclusion

In the present world, everything runs on technology: virtual education, work from home, etc. making Gmail an integral part of our lives. Basically, all forms for all purposes ask for a Gmail address which shows the extensive use of Gmail and its large number of users.

With the Covid pandemic, Gmail saw an increase in users and increasing use of Gmail by people that in 2020 Gmail had two major blackouts globally. Many Companies, Corporations and educational institutions had purchased GSuite to continue the work and education remotely during the pandemic making Google earn a large revenue. Thus making Gmail an essential part of the lives of people.

FAQ

What is Gmail?

Gmail is a free email service provided by Google that generates revenue by displaying personalized ads to its users.

How does Gmail generate revenue?

The two major ways Gmail generates revenue is by displaying personalized ads to its users and through GSuite Subscription.

Is Gmail profitable?

Yes, Gmail is the number one email service provider and has over a billion users across the globe. It has become one of the profitable businesses for Google.

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