There are many billions of users hitting Google search every now and then (40,000 searches every second, 3.5 Bn/day) and this man throws the result of your search query in milli seconds, you are very happy with it. Many of you know Google’s mainstream is advertising revenue, how many of us know that Google makes money for every single click that internet users do…here is how a bit more in detail.
One of my finance Prof said, early 90s people had the guts to invest in a search engine company with an idea to make money through advertisement. The real inflection point for the company was after the Dot.com boom and mobile revolution which is well explained by Moore’s law, i.e Memory size in chips doubles every 2 years so as the computing speed of the processors enabled internet on mobile.
How do our search data help Google? Well, everyone is looking for some information related to work, product or service, about person and the list goes on. This is where Google is trying to capitalize the opportunity by creating database of key words used for search and segment the audience like who, what, where. It also categorizes the purpose of search as Informational, Transactional or for Navigation. Sellers wants this information to target the audience and be the first to offer.
Here is what I tried with few words like Mid night cakes, rest of the words are offered by Google. I am so lazy enough picked the closest one. See how Google filled the space with extra words like “Delivery”, another item “Flower” and “Location” where you want to gift. The intelligence here is gifting can be to any location where as some products and service will be location specific by knowing where you are (they always know your location –latitude and longitude)
Now what happens next it hits the database and bring out the Top websites/sellers. Google gathers all the information you do with the website, like what you purchase, how you pay, where all you navigate and how much time you spent etc.
Wealth of information (knowledge base) collected will become their unique offering to attract manufacturers and sellers. If any of them want to advertise their product/services or to bring their website on top, they can reach out to Google. This is where keyword database (algorithm) plays a vital role
- Keyword ideas based on a phrase, landing page or product category.
- Average monthly search volume for a specific period (based on what we search)
- Search volume trends for a single keyword or group of keywords over time.
The Keyword Planner is a powerful tool, but it’s also part of an advertising platform and heavily oriented towards paid search.
The advertiser need to finalize the budget for the marketing, pick key words from the price list given. Price is determined based on average volume of search, your location details and the competitive bids in the past. Higher the price of the keyword more likey increase the foot falls in the landing page or website. Hence it is very important to pick the right key word so that you get the right customer and conversion to sale.
Else you will burn out your budget for every single click to google…If you are a small company and a first timer looking for ads in google it is wise to choose a good SEO consultants..untill you master the art…
Why google assiduously innovating? we had desktops&latops, then moved to mobiles with internet but with keypads, then touch screen revolutionized. Now that people do not want to type, Google in advance worked on the next expectation of the customer and got ready for voice search. Here people use more words while speaking than less words in typing keywords, which means machine learning on speaking algorithm has to be much robust to match with the voice n accent (same english varying in different countries) – a real challenge which they seemed to have succeeded…
Now their next move is to improvise the Image search….
What is in it for you …more flexible n easy search but with more advertisement “Personalisation to the core” JJJ
Why Google did not think of charging the users for searching as a business model in the first place. The reason is simple, rapid user adoption(multiplicative), built a solid user base, attract advertisers and bet for revenue through AdWords.
What if the ad revenue dies? …will Google start charging the User??
Below site will be helpful to understand step by step process on how to leverage key word search