In the traditional world of advertising, companies pay television/radio networks/stations and newspapers to advertise on alloted time. Then, when the companies get alot of customers, they then pay the (remaining) excess to the networks, stations and newspapers for more alloted time. This, of course, is how the traditional media makes its money.

On the web, (1) companies pay (2) search engines like Google for term-relevant text (or flash) ads. Then the search engines pay (3) domain owners via AdSense to feature those text ads on their websites. The customers for the companies pay for the goods, some of which then goes to Google for more adspace, while Google pays-per-click the domain owners with the money paid to them by the companies.

Its on this fuel that Google’s IPO has skyrocketed in such a brilliant way, with pyrotechnics along the way.

So is this how its done? How to make money on the web?
And, with Google being the king of search engines, is this a done deal?