Google provides a plethora of free services. As I keep mentioning in all of my past trainings, there is no free cheese. Someone pays for everything you use.
BTW, tap the link below to get a 24-hour access to this article and all content and see if it’s right for you. 👇
The biggest question in the modern competitive IT environment revolves around how to take a potential customer (who doesn’t like paying for stuff) and monetize them.
The answer is simple, you spend money up front 💰, create awesome apps, give them out for free. The app has to be so good and it becomes a de facto standard in the whole world (like Google Maps, Google search, Gmail etc.).
Now that you have an immense install base of customers, you start collecting their browsing habits, their demographic data, their shopping habits etc. 🛍
You then bring advertisers to your platforms. Considering that you and I are pretty receptive to seeing advertisement (we either don’t care much or we tune it out), we would rather keep using these super useful apps with ADs sprinked in them.
The most powerful part in this business model becomes our advertisement ID (the data on shopping habits etc.). Companies can now show us ADs from advertisers knowing that a certain percentage of the ADs will convert into customers for the advertiser.
How do you improve that conversion percentage. You use the habit and the demographics data to cherry pick the right users. This can significantly improve the rate at which one responds to the AD. For example, a 65 year old female will be less likely to buy a video game for themselves than a 16 year old male, who already plays video games. If an app has this information about their free user, then can easily push the right AD to the right customer.
By increasing the odds of selling ADs, this makes Google's apps a great breeding ground for all types of advertisers to thrive on.
