That’s a rich valuation for a toolbar company:
Conduit empowers web and mobile publishers to engage their users across multiple platforms. From Community Toolbars and mobile apps to notifications and web bars, the company’s products enable publishers to constantly connect with their users wherever they are.
via J.P. Morgan Fund to Buy 7% Stake in Conduit for $100 Mln | peHUBpeHUB.
Schachter believes Google searches on Apple devices resulted in $1.3 billion in gross revenue. He believes Google has a 75% traffic acquisition cost associated with that revenue. As a result, Google only gets $335 million in net revenue from searches on iOS and Safar
And this is good because:
Because then we can keep using it as a major competitive advantage.
[edit: added intro to put quote in context]
Fred’s been saying this for a while and when he mentioned this last year, this was my response:
That’s Fred Wilson’s advice. I had mixed feelings about his original post because although the message felt wrong, if legions took it as gospel, it means less competition for me in any channel other than earned media and social media!
The top spender is IAC/InterActiveCorp, owner of Ask.com, Match.com, Citysearch and other companies that depend on buying long-tail search terms in bulk. Ask, in particular, buys lots of cheap keywords and remarkets them to advertisers bidding on like keywords.
via Meet Google’s Biggest U.S. Search Advertisers | Digital – Advertising Age.
It’s been a while since I wrote about this guys…
Mark Mahaney is a very good analyst. Here’s his comments comparing Facebook to Google circa 2004:
… we think FB made 25-30% net margins. For context, in the year that Google generated $2B in Net Rev (2004), its Net Margin was 24%. In our opinion, Google’s growth trajectory post 2004 could be a proxy for FB future growth rate – given what are similar growth end-markets in Internet advertising. Also, over the last several years, Google has expanded Net Margins to 40%+.
via Facebook Ad Spend 6 Percent Of Google | Peter Kafka | MediaMemo | AllThingsD.
I’ve said before that there’s a big difference when you make this sort of comparison and it requires a lot of faith in Facebook to discover a business model that will scale with it’s social network property.
That’s Gene Munster combining revenue forecasts with userbase forecasts. His 2010 ARPU for Google is $5.90.
According to Piper Jaffray analyst Gene Munster, Google could earn $1.3 billion in mobile advertising revenue in 2012, or $9.85 for each Android user. The analyst forecasted there would be 133 million Android users by 2012, and he arrived at the $1.3 billion figure by using publicly quoted numbers from Google itself.
via Each Android User Will Make Google $9.85 per Year in 2012.
I don’t entirely get the following paragraph:
“As we noted, we believe Google’s ARPU on Android was $5.90 in 2010. We believe Google’s average revenue per search user was $18.85 in 2010 and average revenue per user for Google’s advertising businesses in total was $25.77 in 2010,” Munster said.
Average revenue per search at $18.85? Better check that figure.
The number one ranking in organic Serps probably isn’t as valuable now as it once was. Google wants to divert more of the traffic onto money-making clicks.
via Is 1st place organic worthless without Adwords campaign?.
I know that’s a crazy headline but the thread is pretty interesting and describes how Google has recently been getting more aggressive with monetization. Typically, pushing monetization means tipping the balanced towards sponsored links at the sacrifice of editorial links.
Here’s a more detailed list of what Google’s done:
Google has
a) pushed ads in from the right, closer to organic SERPs (August 2009);
b) released Ad Sitelinks which is yielding 30%+ sustained CTR improvements for keywords it’s active on (taking directly from top SEO position traffic)
c) too many other AdWorks tweaks to count, most of which incrementally push eyeballs from organic to AdWords
We’ve seen Google pull back on monetization before but this time feels different. Are they feeling pressure from Wall Street? Paranoid that some of their big competitors have more cash than they do?
(via SearchQuant)
A relevant data point since we’re beginning to hear rumors about a Twitter ad platform that is similar to Adwords.
A WebmasterWorld thread has Google AdSense publishers talking about how well traffic from Twitter converts in terms of clicks on AdSense ads.
The overall consensus from the thread is that Twitter users are too cool to click on AdSense ads.
I liked the charts in this post. Here are the three takeaways from the post.
It’s probably worth it to read the post if you find any of those interesting.
The graph depicts cost-per conversion (CPC) distribution across a variety of different click volumes, including long tail costs per conversion.
via Short Vs. Long Tail: Which Search Queries Perform Best?.
