Cost of Free Search Services
Let’s pick Google as a representative of a free search engine. Despite providing a free service, Google’s value has been rising rapidly and today it is comparable with IT industry giants like Microsoft.
Free search services
There’s nothing simpler than opening Google, typing in a few keywords and hitting Enter. Results relevant to your query from all over the world are delivered to you in less than a second.
Behind the scenes, a bunch of computers is downloading the latest content from the web, analyzing it and ranking pages according to numerous methods. Google employees are constantly updating the ranking algorithms, checking quality of results and trying to prevent spammy pages from ruining users’ experience.
And this group of altruistic businessmen is letting you exploit the fruits of their efforts for free. Oh, really? TANSTAAFL!
Where does the money come from?
Google’s main source of income is contextual advertising. And guess who has to pay the price of advertising in the end… The buyer of a product, of course. And that would be you, dear reader 
.
So, products are more expensive because of Google?
Let’s not jump to conclusions. I did not say that. What I just said was that a fraction of the money you paid for your shoes or stereo ended in Google’s purse. Advertising is a necessary part (regrettably) of each successful product and it has been here long before Google.
It is entirely possible that Google made the advertising more efficient and thus cheaper.
So, they provide free search while also making things cheaper? That’s so cool
They did a very good job, no doubt about it.
Still, we should be aware, that the search is not free. We are paying for this service. It does not matter whether one person clicks on adverts presented on Google site or not. The system works and the money flows.
The full circle
When you use a search engine, you have to type in a few keyword related to subject of your interest. You are literally telling the search engine your true wishes. And that’s the only thing every successful advertiser is looking for.
Flow of money and information.
A search engine is in a difficult position. Users expect it to deliver the most relevant results, while manufacturers are paying it to show their advertisement. Google and other major search engines solve this conflict of interests by displaying the adverts in a slightly different manner.