Google is trading above $400. In the last quarter, their revenues were above $1.5B. This means that they are selling a ton of ads.
The way Google’s advertising model works, most of these sales happen when someone clicks on an ad. It’s very much a pay-for-performance model. This means that a ton of people click on these ads.
Who are these people? I don’t think I have ever clicked on a Google ad. In my informal surveys, my friends and colleagues do not seem to click on these ads, either. I am very curious.
I believe all sorts of people are clicking on Google Ads.
Some crazy facts from the book “The Google Story” by David Vise.
– Most Google users don’t understand the difference between the main results section (the left 2/3 of the result page) and the sponsored ads section (the right 1/3 of the page).
– Each clicked sponsored ad on average brings $0.50 of revenues to Google.
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