{"id":9714,"date":"2012-01-25T09:16:05","date_gmt":"2012-01-25T09:16:05","guid":{"rendered":"http:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/e-commerce\/trends_and_surprises_regarding_googles_2011_advertisers.html"},"modified":"2012-01-25T09:16:05","modified_gmt":"2012-01-25T09:16:05","slug":"trends-and-surprises-regarding-googles-2011-advertisers","status":"publish","type":"post","link":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/e-commerce\/trends-and-surprises-regarding-googles-2011-advertisers.html","title":{"rendered":"Trends and Surprises Regarding Google’s 2011 Advertisers"},"content":{"rendered":"

Google’s 2011 revenues were $37.9 billion last year and 96% of that money came from ads. Now I know what you are thinking. Where is all that money coming from? Well thankfully, the people at Wired put together an infographic that explains it all. Here are some highlights – a piece of the infographic and a link<\/a> for the full graphic.<\/p>\n

\"Thumbnail<\/a><\/p>\n

Finance and insurance totaled at $4B while retail and general merchandise was $2.8B and travel and tourism came in at $2.4B. Computers and consumer electronics came in at $2B.<\/p>\n

Regarding individual companies the leading web retailer Amazon spent $55.3M followed by eBay at $42.8M and Macy’s at $35.6M.<\/p>\n

On the education front, University of Phoenix spent $46.9M while ITT spent $29.9M.<\/p>\n

On the telecom front AT&T was the leader at $40.8M while Verizon followed up at $22.9M. Go Daddy on the domain name front came in at $21.7M.<\/p>\n

Another bit of information which is interesting has to do with the price per click for some of the top keywords. For example “Self-employed health insurance” costs a whopping $43.39 per click – that tells you a bit about how profitable that business is. A good basis for comparison may be “Barbie doll” which costs $1.30. It is worth mentioning that a typical Barbie Doll costs about $15-$20<\/a> meaning Google takes 5% or more of the total cost for this item – not for a sale but just a click.<\/p>\n

Another highly priced term is “online video conferencing software” at $35.53. Seems like a lot of money but software is high-margin so this isn’t too surprising. I did a search on the term and the advertisers at the top were Nefsis, Arkadin, Gotomeeting, fuzebox, Cisco, Webex and Siemens Enterprise.<\/p>\n

Perhaps most surprising is the term “custom business cards” which costs $13.83 per click. Since not all the people who click a link purchase it should come as a surprise that the company Vistaprint says in its ad that they will sell you 250 business cards for $10. To me the math doesn’t add up. – Perhaps they make it up in volume \"i-dont-know\". I really hope so because Vistaprint spent $26.9M on Google last year.<\/p>\n

The data clearly reminds us of something which may be forgotten – Google is not so much a tech company as a company which is feeding off of budgets which used to be dedicated to direct mail, coupons and newspaper circulars. Many of the companies spending the most money also spend a lot on billboard and TV advertising making Google just another mainstream outlet but with obviously increased measurability.<\/p>\n

Going forward we can expect Google to try to push more of these advertisers from search click ads to YouTube – this is happening already but with Google’s recent announcement that they server 4B videos<\/a> per day there is a massive amount of inventory to sell ads on. This is a natural progression for the company and explains why they have invested in new<\/a> custom content video channels.<\/p>\n","protected":false},"excerpt":{"rendered":"

Google’s 2011 revenues were $37.9 billion last year and 96% of that money came from ads. Now I know what you are thinking. Where is all that money coming from? Well thankfully, the people at Wired put together an infographic that explains it all. Here are some highlights – a piece of the infographic and<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[157,168,180,1,163,210,1678,203,118,174,175],"tags":[],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts\/9714"}],"collection":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/comments?post=9714"}],"version-history":[{"count":0,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts\/9714\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/media?parent=9714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/categories?post=9714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/tags?post=9714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}