Who does Google pay to advertise their own services with Adwords?

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Try searching “Google Adsense”, and you’ll likely see a sponsored ad at the very top from Google, linking straight to the Adsense login page. Just below that, you’ll see the real first result, which is also the login page of Google Adsense.

What’s interesting here is that they’re essentially using their own ad distribution platform and putting their ads into the system. So who are they paying, and do they abuse this to drive up prices? In this article, we are going to find out.

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Who does Google pay to advertise their own services with Adwords?

The likely answer to this question is that Google will reserve some keywords so that nobody else can bid on them, or only place their ads when nobody else is bidding on them. Upon investigation, we are able to create an ad specifically targetting “Google Adsense”.

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It seems as if Google must use their own service to put themselves in the ad spot for Adsense and many other terms. However who are they paying? Normally, Google will be paid by advertisers and Google will distribute the payment between themselves and the site which is being advertised on, which, in this case, is Google’s site. They are essentially getting this for free – which may be fair, considering it’s their own platform, but what if the ads appear on other peoples’ sites who run Adwords?

We also have to ask the question of why would Google even advertise their own services through their Adwords platform? For the search term “Google Adsense”, the front page is essentially filled with links to Google sites and particularly directly to Google Adsense even without the paid ads.

 

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