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Where Google Really Makes Its Money
- deleted 15y ago[deleted]
- vgurgov 15y agoThis is awesome tip for smart web entrepreneurs looking for new startup ideas.
- Gullanian 15y agoI find it hard to believe companies pay Google $55 per click and that is in any way profitable for them. There must be more +EV opportunities out there for advertising. But I'm probably mistaken as usual.
- bialecki 15y agoMaybe I'm missing something but the title seems to imply that Google makes most of it's cash from the very top keywords, but I don't see any evidence of that. Anyway, very interesting what the top keywords are. Does anyone know why "cord blood" is so expensive? A close friend is involved with a cord blood bank and I know there's great potential in cord blood, but I'm not sure why it's such an expensive keyword.
- dbfclark 15y agoThe point here is really about what you might call advertising economies of scale -- if one good nets its producer $10 per sale and another $100/sale but the price and effectiveness of advertising are the same, it's much more exciting to advertise the second than the first. Google is segmenting these markets in a way that newspapers and tv can't: only one person can buy the top keyword per search, so while TV advertising is wall-to-wall insurance, loans, and cars, the same phenomenon expresses itself in google terms through high-priced keywords. As to cord blood: http://en.wikipedia.org/wiki/Cord_blood http://en.wikipedia.org/wiki/Cord_blood claims that "The cost of private cord blood banking is approximately $2000 for collection and approximately $125 per year for storage, as of 2007." which sounds to me like a pretty high-margin (in dollar terms) business, hence the attractiveness of advertising.