10 Cents

I was catching up on my blog reading this morning with coffee and was stunned to read that “Google gets nearly a dime for every search it serves in the US”. To be precise, it’s actually about 9 cents per US search on Google (up 8.3% this quarter). To borrow a phrase mysteriously attributed to the late Senator Everett Dirksen: “A click here, a click there, petty soon, you’re talking about real money.”

Another interesting stat from John Battelle’s Searchblog coverage (of this research), is that on average Google commands 54 cents per ad. In other words, advertisers (bid and) pay Google 54 cents on average for each click. This is commonly known as CPC, or Cost Per Click. I stress on average because the spectrum of CPC prices can be pretty extreme: Obscure, hard-to-monetize words command only a cent or two at CPC auction, while highly prized words, especially those in competitive deep-pocket industries easily command several dollars. It’s fairly obvious that the toe jam industry would pay significantly less to run an ad alongside “toe jam” that the big-bucks airline industry would pay for “airline tickets”?