Can someone explain how Google makes so much money with their ad system and how its related to these kinds of ads? Google originally planned never to do ads. They changed course I think 2002 or so, and are now worth 500B$.
It's at the opposite end of the spectrum from taboola say, and is probably the most acceptable form of advertising I've seen. So both customers and advertisers like it.
Advertising is about matching up your intent with what the advertiser is selling, and there's no clearer signal of this than what you type into a search bar because you're letting Google know exactly what you're looking for at that moment.
While Google does have a big ad network for banners and text ads across the web, their search ads are very well targeted by your search queries in addition to all the profile information they have about you. This gives them an amazing ad platform that works very well for pretty much all of their clients.
The only other company that comes close today is Facebook which works by mining all the data that is shared and estimating intent through your likes, updates and interactions.
Just because i occasionally browse gaming news do not mean i want a face full of glowing eyes or rotting flesh wherever i go.