96 percent of Google’s revenue is advertising, who buys it? (infographic)

http://venturebeat.com/2012/01/29/google-advertising/

by coolrhymes • 14 years ago

8 6 14 years ago

baltcode3• 14 years ago

The cost per clicks are in the range of $2 all the way to $35! So the advertiser pays Google 30 bucks when one person clicks on their ad? That does not seem believable.

xekul3• 14 years ago

I've heard these numbers from multiple sources and I believe they are correct.

The highest costs per click listed in the infographic are for specific, long-tail keyword phrases (three or four words long). These keywords can convert at an absurdly high rate, which means that advertisers can spend a lot of money on clicks and still make a profit. And since Adwords works on a bidding system, the costs per click can get driven up pretty high in a competitive niche.

If you look at the keywords that have a cheaper cost per click, the keywords are fairly generic. That's because the conversion rate is lower for these keywords, so advertisers have to adjust their bids per click downward in order to make a profit. If the infographic showed keywords that are even more generic (e.g., one-word keyword phrases), you would see even lower costs per click.

baltcode3• 14 years ago

That's interesting. Do you know How the bidding works for ads shown along with content? Like with blog posts, news stories, and in gmail. How do they bid on how close and likely to buy it is from the content?

96 percent of Google’s revenue is advertising, who buys it? (infographic)

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