5 ms·
Well, if the price goes up, the other bidders should reconsider if it's worthwhile for them. But I have to say that Google's business model is brilliant: - adv
by 6ren 15y ago
Well, if the price goes up, the other bidders should reconsider if it's worthwhile for them. But I have to say that Google's business model is brilliant:
- advertisers bid against each other for top placement. It is absolutely fair for the advertisers to compete with each other, and google cannot be accused of squeezing them with higher prices - yet as a natural by-product, google gets the highest possible price...
- google provides a wonderful service to people searching the web, for free - how could you possibly complain about that? Yet, it has these enormous revenues from advertisers. So, this is the old TV formula; but improved with the auction above.
It's fair, it's helpful, it's enormously profitable.
- Retric 15y agoTV commercials also used the auction model. Just look at how much it costs to run adds during the supper bowl.