The Break Down: How Google Makes Its Billions
December 28, 2011
Google has been in the news a lot as of late regarding its efforts to branch into brand advertising.
According to the Search Engine Watch article “Google’s 20 Largest U.S. Search Advertisers of 2011,” Google made $29 billion in 2010, 97 percent of which was a result of search advertising.
Kantar Media, a unit of ad giant WPP, is trying to figure out the exact numbers that the search giant is making by breaking down the amount that companies spent this year on web advertising. Top ad spenders ranged from $174 million (IAC/InterActiveCorp) to $41 million (Bank of America Corp).
The article reports:
The reason it’s so hard to figure out who is spending what in search advertising is because you can’t really measure it on a cost-per-impression basis like everything else in this world. Advertisers bid on different keywords in real-time and the price depends on competition for a particular keyword, quality score, and a variety of other factors. Sure, we can guesstimate as to what the numbers will be, but it’s hard to be accurate.
Based on the amount of money that these companies are spending on advertising, I’m sure they are getting plenty of traffic.
Jasmine Ashton, December 28, 2011
Sponsored by Pandia.com
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