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The estimated average Google search ad cost-per-click (CPC) is $2.69 [0]. Working on the conservative assumptions that an average person will run 10 searches a

The estimated average Google search ad cost-per-click (CPC) is $2.69 [0]. Working on the conservative assumptions that an average person will run 10 searches a day and click on 1 search ad a day, Google will make $83.39 a month from the average user. It is likely much more though. [0] https://valveandmeter.com/pay-per-click-statistics/ https://valveandmeter.com/pay-per-click-statistics/

l33tman 6y ago
Their global ad revenue is a public figure right? It should be easy to estimate an average. If they have a billion users, do they actually have $100B in monthly revenue? I highly suspect the distribution is not flat in any way though (some users are much much more valuable than others and it's why advertisers pay FB and Google to target the ads for them).
- chris_f 6y ago
  Interestingly enough, I just went to 'Google' that question [0] and got some very non-relevant info boxes: https://imgur.com/a/J9U5ZwJ https://imgur.com/a/J9U5ZwJ ----- [0] https://www.google.com/search?q=google+ad+revenue https://www.google.com/search?q=google+ad+revenue
plorkyeran 6y ago
Averaging one click on a search ad per day per user is much higher than I would guess.
- chris_f 6y ago
  I would say that may be true for the average HN reader, but in my experience definitely not true for the average overall user. Based on the linked study [0], 57% of people can't tell the difference between a Google ad and an organic search result. [0] https://varn.co.uk/01/18/varn-original-research-almost-60-people-still-dont-recognise-google-paid-ads-see/ https://varn.co.uk/01/18/varn-original-research-almost-60-pe...
- drexlspivey 6y ago
  I've never clicked an ad in my life
  - nalekberov 6y ago
    How old are you?
- m-i-l 6y ago
  Bear in mind that there is a vast amount of clicking on "wasted" adverts, i.e. paid adverts which would have been the top result of an organic search anyway, e.g. eBay spending $20M a year on ads targeting the keyword "eBay", which they thought was great because it appeared to give a $245.6m return on investment, until they switched it off for a bit and realised they got pretty much the same traffic and conversion rate without the massive advertising spend[0]. [0] https://thecorrespondent.com/100/the-new-dot-com-bubble-is-here-its-called-online-advertising https://thecorrespondent.com/100/the-new-dot-com-bubble-is-h...

l33tman 6y ago

Their global ad revenue is a public figure right? It should be easy to estimate an average. If they have a billion users, do they actually have $100B in monthly revenue? I highly suspect the distribution is not flat in any way though (some users are much much more valuable than others and it's why advertisers pay FB and Google to target the ads for them).

chris_f 6y ago
Interestingly enough, I just went to 'Google' that question [0] and got some very non-relevant info boxes: https://imgur.com/a/J9U5ZwJ https://imgur.com/a/J9U5ZwJ ----- [0] https://www.google.com/search?q=google+ad+revenue https://www.google.com/search?q=google+ad+revenue

plorkyeran 6y ago

Averaging one click on a search ad per day per user is much higher than I would guess.

chris_f 6y ago
I would say that may be true for the average HN reader, but in my experience definitely not true for the average overall user. Based on the linked study [0], 57% of people can't tell the difference between a Google ad and an organic search result. [0] https://varn.co.uk/01/18/varn-original-research-almost-60-people-still-dont-recognise-google-paid-ads-see/ https://varn.co.uk/01/18/varn-original-research-almost-60-pe...
drexlspivey 6y ago
I've never clicked an ad in my life
- nalekberov 6y ago
  How old are you?
m-i-l 6y ago
Bear in mind that there is a vast amount of clicking on "wasted" adverts, i.e. paid adverts which would have been the top result of an organic search anyway, e.g. eBay spending $20M a year on ads targeting the keyword "eBay", which they thought was great because it appeared to give a $245.6m return on investment, until they switched it off for a bit and realised they got pretty much the same traffic and conversion rate without the massive advertising spend[0]. [0] https://thecorrespondent.com/100/the-new-dot-com-bubble-is-here-its-called-online-advertising https://thecorrespondent.com/100/the-new-dot-com-bubble-is-h...