Google's money machine...

[Immortal Wombat]

Has EPIC 2014 been posted here yet?

[pchang]

Kid believes that capitalist pig dogs should not be allowed to get rich just because they invent and create wonderful inventions and services that the rest of us want to use.

[Kidlicious]

A whole lot of people are getting rich, not just the inventors. All they do is buy stock with their blood dripping capital.

[Ming]

Originally posted by Kidicious
A whole lot of people are getting rich, not just the inventors. All they do is buy stock with their blood dripping capital.

Yawn...

Blood dripping capital...

When I invest my 401K money, I don't notice any blood dripping from it. Just hard earned cash from doing my job... a process repeated by tons of other family guys doing their best to make a living and support their families...

Companies use stock money to stay in business and expand... without it, inventors would get nothing for their ideas. What good is an idea if you don't do something with it.

[pchang]

Originally posted by Kidicious
A whole lot of people are getting rich, not just the inventors. All they do is buy stock with their blood dripping capital.

People who bought the stock are only making a little bit of money. The big money makers here are the founders, the original staff that helped build the core of the company, and the original investors who put up the money so the founders could hire the original staff and build the core of the company.

Did you know that Microsoft created 15,000 millionaires out of its employees?

[Spiffor]

Threadjack notwithstanding, how come google makes so much money? My brain can't compute the idea that there is 3.8 billion to be made with ads, especially those as discreet as google's.

[Last Conformist]

Originally posted by Kidicious
I'll pull an LC. Why should we care?

I've been reduced to a dictionary entry.

[chequita guevara]

Originally posted by Oerdin
You would kill the goose which lays the golden eggs, wouldn't you?

They have plenty of money to spare, apparently.

[Ming]

Originally posted by Spiffor
Threadjack notwithstanding, how come google makes so much money? My brain can't compute the idea that there is 3.8 billion to be made with ads, especially those as discreet as google's.

While ads only make up a portion of their revenue... what they do make out of it is astounding.'

Paid Search (those paid listings that somebody wondered if anybody clicks on) is the fastest growing internet advertising category. Yes, some people would rather die then click on a paid listing, however, MANY, MANY do.

It's one of the most efficient ways to get somebody to a site. Nothing is cheaper on a "cost per click through" basis. It sure beats the hell out of banner advertising.
When you are getting killed on "organic" listings, and your stuff is appearing on page 150... paid search is a very viable and important option. This is BIG BUCKS!
On any kind of ROI basis, it's the most effective use of money on the internet.

[Agathon]

Well I think it is good that Google is doing well. Their ads are the least obtrusive of any I commonly see on the net, and if they work the best perhaps that means an end to the evil flash ads.

[Cruddy]

I'm still puzzled as to how a search engine can make money... anyone going to enlighten me?

[Kidlicious]

Originally posted by Ming
Companies use stock money to stay in business and expand... without it, inventors would get nothing for their ideas. What good is an idea if you don't do something with it.

I'm not saying that inventors shouldn't get anything for their trouble. But what you are saying is that investors should get something for doing something that is necessary for capitalism to work, but ignoring the fact that capitalism is not necessary.

Now stop contributing to the threadjack. You are setting a poor example. :P

[Bosh]

Also Google makes a good bit of money selling search search software to businesses for their internal networks IIRC.

Also google can make some money off the adds since say a company that sells squirrel feeders can have their ad only pop up when somebody searches for "squirrel" "delightful tree-dwelling rodents" or whatever, so for them advertising on google is much more efficient than banner advertising since they only get the problem they want.

The main problem ATM with google advertising is that competitors and annoying people in general write programs that makes the ads of people they don't like get clicked repeatedly, thus artificially inflating their advertising costs.

[Cruddy]

Originally posted by Ming


Paid Search (those paid listings that somebody wondered if anybody clicks on) is the fastest growing internet advertising category. Yes, some people would rather die then click on a paid listing, however, MANY, MANY do.

It's one of the most efficient ways to get somebody to a site. Nothing is cheaper on a "cost per click through" basis. It sure beats the hell out of banner advertising.
When you are getting killed on "organic" listings, and your stuff is appearing on page 150... paid search is a very viable and important option. This is BIG BUCKS!
On any kind of ROI basis, it's the most effective use of money on the internet.

Oh I SEE... it's a protection racket. "Pay us money or we'll list you in an obscure location".

[Ming]

Originally posted by Cruddy
Oh I SEE... it's a protection racket. "Pay us money or we'll list you in an obscure location".

However, not true.

While the search engines continue to change the algorithms they use to determine what order a site is listed on a search request so that they can stay ahead of companies who try to manipulate results to help their clients stay near the top, that part of the search has nothing to do with advertising.

When you do search on google (or other search engines)... the results are broken out into two categories. Organic and Paid.

The organic listings are just the traditional results you get. That order is based on the companies search algorithms, determinded by how their little bots go out and index available content. You can't pay them to change the order of the results. However, there are companies available for hire who can prove that they can help you insure that your site will be listed higher... and that's why the search engines constantly update how they do their rankings. Picture it as battle of technology, with the search engines trying to stay ahead of the bad guys

Paid search is the crap you see usually in bold above the organic listings, and along the right side of the page.
Advertisers pay in auction style for the right to certain key search "words/phrases" to have their site come up on the first page. Words in high demand like "stereo equipment" could cost $20 per click through vs obscure words that might only cost 1 or 2 bucks per click through. The highest bidder is listed first, and so on, with usually the top 3 or 4 bidders appearing on the right side NEXT to the actual organic listings. We only pay for people that click through, so it's not only a classic supply and demand model, but we only pay for perfomance.

Smart people know that it's advertising... but in many cases, it is relevent to what they are looking for. Click through rates are FAR higher than traditional banners (which most people ignore or block) and also tons more efficient than media rich ads (flash, expandable banners, pop ups, pop unders)

As I said, it's one of the hottest mediums out their right now... and google and other search engines are cashing in. Currently, it's a sellers market, and they are making big bucks.