4 ms·

About $8 billion revenue per quarter for EU + Middle East, let's say roughly 60% of people in Europe use the internet and > 90% of them use Google. Therefore:

About $8 billion revenue per quarter for EU + Middle East, let's say roughly 60% of people in Europe use the internet and > 90% of them use Google. Therefore: 8,000,000,000 / (500,000,000 * 0.9 * 0.6) = $29.63 per person revenue per quarter. Could be as much as +- $10 given how arbitrary (research based, but still guesswork) my inputs were... Somewhere around $100 per person per year seems insane but I guess how much do you spend per year on stuff? P.S. please feel free to correct my figures!

throwaway808080 8y ago
That $100/person isn’t spending by individual users. They are spent by companies advertising and paying for clicks. Guess how many times an average person clicks on an ad knowingly/unknowingly.
- mstolpm 8y ago
  So: who is giving the money to the companies that they use for advertising?
  - quentindemetz 8y ago
    other companies ?
    - conanbatt 8y ago
      Consumers...
      - yeahitslikethat 8y ago
        Tax payers
        mfoy_ 8y ago
        That's really not relevant.
        misterman0 8y ago
        Ok, I know. _What are_ consumers?
        amelius 8y ago
        Perhaps in the sense that we all (indirectly) pay the tax (i.e. cost) of advertising, whether we use Google or not.
scrumbledober 8y ago
This really puts things in to perspective. Subscription startups looking to get some percentage of the population to pay $10 a month can never reach the scale of google advertising when they are extracting nearly that much value on average from every single person.
- bduerst 8y ago
  Well that's part of the problem inherent with the subscription model, isn't it? Google can make >$100 a click for ads on mortgages or insurance keywords, but subscription models are locked in to revenue that doesn't scale with the category of use - unless they become some sort of affiliate service.
  - londons_explore 8y ago
    A friend of mine bought a house from a cost-per-click ad... If the seller has $1000 per click, that's really going to distort the market...
- lostmsu 8y ago
  If you are comparing with Netflix, then you should consider family accounts, where many people share that $8/m
robocat 8y ago
> P.S. please feel free to correct my figures! Presumably the value of advertising is highly correlated to the amount of money you spend (on things you have some choice over). Disposable income is a strongly skewed distribution (across countries, within most countries). An average won't help you much if you want too know how much Google makes off you!

throwaway808080 8y ago

That $100/person isn’t spending by individual users. They are spent by companies advertising and paying for clicks. Guess how many times an average person clicks on an ad knowingly/unknowingly.

mstolpm 8y ago
So: who is giving the money to the companies that they use for advertising?
- quentindemetz 8y ago
  other companies ?
  - conanbatt 8y ago
    Consumers...
    - yeahitslikethat 8y ago
      Tax payers
      - mfoy_ 8y ago
        That's really not relevant.
        misterman0 8y ago
        Ok, I know. _What are_ consumers?
        amelius 8y ago
        Perhaps in the sense that we all (indirectly) pay the tax (i.e. cost) of advertising, whether we use Google or not.

scrumbledober 8y ago

This really puts things in to perspective. Subscription startups looking to get some percentage of the population to pay $10 a month can never reach the scale of google advertising when they are extracting nearly that much value on average from every single person.

bduerst 8y ago
Well that's part of the problem inherent with the subscription model, isn't it? Google can make >$100 a click for ads on mortgages or insurance keywords, but subscription models are locked in to revenue that doesn't scale with the category of use - unless they become some sort of affiliate service.
- londons_explore 8y ago
  A friend of mine bought a house from a cost-per-click ad... If the seller has $1000 per click, that's really going to distort the market...
lostmsu 8y ago
If you are comparing with Netflix, then you should consider family accounts, where many people share that $8/m

robocat 8y ago

> P.S. please feel free to correct my figures! Presumably the value of advertising is highly correlated to the amount of money you spend (on things you have some choice over). Disposable income is a strongly skewed distribution (across countries, within most countries). An average won't help you much if you want too know how much Google makes off you!