disolitude said:
I also knew its not a correct number to look at when calculating month to month revenue increase. You're saying that Bing generated 19.5 million X your magic and wrong CPC formula extra revenue in January which is incorrect. Its 358 million X magic formula which you still need to work on. |
What you're (essentially) saying is, the revenue gain due to the small market share increase is larger than it would seem at first glance, because you have to also factor in overall search volume growth to get a real number on revenue gain. You can't just multiply the small market share gain * last month's revenue to get an accurate total, you would need to use the overall volume gain percentage as the multiplier (while factoring for click through rates and values). You're saying market share increase is not equal to revenue increase in a rapidly growing market... aka, MS could stay at the same market share percentage, or even lose some market share, and as long as the overall industry growth is high enough, they would still see an overall revenue gain. Conversely, they could gain a large amount of market share but lose revenue if the industry were shrinking at a pace faster than their market share gain.
Simply put, revenue growth for a search provider is more directly related to overall search volume, and not directly related to the market share number. You're not negating market share, just pointing out a more important factor in the equation as related to total revenue.
EDIT: Without knowing the rate of increase or decrease of the overall industry, the market share number is completely useless in determining revenue gain or loss.
