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disolitude on 15 February 2013
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dsgrue3 said:
disolitude said:
dsgrue3 said:
disolitude said:
See post to timmah here. We aren't talking volumetric increases.




Yeah I knew all along thats what you're talking about.

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. 

I'm not discussing revenue from a volumetric increase, I'm discussing revenue from a market share increase - only relevant thing to discuss since this thread is about market share not volumetric increase in searches. I mean it's in the OP.

As for you saying I'm wrong, here's some more charts to assert my position:

Click through rates = what portion of searches are CPC...and CPC average rate:

Looks like $0.40 was low for Bing, $0.66. Using new numbers for January using above rates:

19.5m (search proportion of 0.1% market share increase) * 0.0161 (CPC portion) = 313,950. And at $0.66 per = $207,207

Volumetric just for fun:

358m * 0.0161 = 5,763,800 * $0.66 = $3,804,108 - pretty abysmal when they lose over $130m/month.


You can find all kinds of CPC stats out there tracked by different companies...including Kenshoo Inc. There are lots of companies run a sample of 1000 word bidding on search engines and then post the cost it took to buy them. Then they post their findings. They really don't represent the full picture though.

But appart from giving you my Google AdWords and Analytics login, there is not much I can do to show you that average CPC rates for Google. It may be because I am in Canada but CPC for Bing and Google over here is well over a dollar.

Essentially you need a login for this to see how much each word costs - https://adwords.google.com/o/Targeting/Explorer?__c=1000000000&__u=1000000000&ideaRequestType=KEYWORD_IDEAS

And yeah, according to my math, bing made extra 10 million in search revenue in January compared to December. It's true that Bing is still losing money but they have lowered their losses every quarter for the last 2 years. The Yahoo deal is what's making them lose money. They pay yahoo 90 cents for every dollar their search generates while having to fully power their search with Bing. 

The way search works is that the higher your user reach, the better search data you provide, so this is money well spent for Microsoft as they are doubling their pool of search inventory through Yahoo. They are also growing marketshare faster than Yahoo. Even with Yahoo they will be profitable in a year or so, however without yahoo on their back, they are most likely already profitable today with Bing alone.