Many people realize that the profit of the “search engine number one” should be a lot of money, but $ 100,000,000 per day is an amount that surpasses the wildest assumptions. What does google earn? We offer you a great infographics, revealing in detail the economy of Google.
In a recent report, WordStream provided some interesting and more than detailed data about the economic situation of the search giant. WS has published an average CPC for the most popular niches and named the 10 industries that spend the most on advertising in Google AdWords.
94% of Google’s revenue comes from AdWords advertising — a well-known fact directly related to key indicators such as CPC and CTR. Google’s advertising revenue formula can be represented as follows: the number of ad impressions * CTR * CPC = LOTS of money
In the third quarter, the average cost per click (CPC) decreased significantly by 16.5% for Google search, by 18.2% for the Display Network (CMS), and the CTR fell by 12.4% for search and increased by 13 , 8% for CCM. Along with this impressive growth rates of advertising impressions and clicks. The number of clicks increased by 21.6% for Google search and by 29.1% for the Google media network.
A sharp increase in the number of impressions leads to a decrease in CPC and CTR for the advertiser, and the display of a larger number of ads on the page significantly increases the number of clicks on the paid search.
Increasing the number of impressions can be a strategy whose meaning is to make a profit. In other words, the increase in the number of impressions and the number of clicks led to a decrease in the price per click, which brought Google a huge income in the third quarter.
Why is it important?
How much and how does google earn? Conclusions by industry
How was the study done?
Problems encountered during the study
1. Currency conversion
2. Sliding averages
3. High margin of error for industry indicators
4. A large number of English-speaking countries in the study
Why does the cost per click decrease?
Instead of conclusion
Why is it important?
According to the founder and technical director of the company Larry Kim, the trends observed in the economy of Google, create favorable conditions for AdWords advertisers. Increasing the number of available resources for impressions, combined with a lower CPC, means that PPC advertisers will now get more customers for less money.
Such conditions allow companies with a small budget to use PPC marketing for promotion. Previously, many brands have significantly restricted the use of paid search for their marketing campaigns due to the rising cost of a click.
But despite this, according to Larry Kim, the Google Advertising system remains attractive to advertisers because it provides an opportunity to improve the ads to increase the number of clicks and conversion rates.
Conclusions by industry
Below are some interesting facts that WordStream has learned from research.
The average CPC in the Finance industry is $ 3 per click per search and $ 1 per click on the Display Network. In second place is the “Work and Education” industry, where the CPC is $ 1.80 per click in Google Search. Finance-related advertising leads to more than 1,000,000 daily conversions in the Google AdWords system.
The highest CTR — in the industry “industry” — 5.23%, slightly lower in the industry “Travel and tourism” — 4.88%.
“Work and education” has the highest conversion rate — 6.27%, “Shopping” — 6.09%, and “Beauty and fitness” — 5.63%