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the 1% bit of profitability in searching for information
hjharris
follow
2
5-28-2007 1:42 AM
321 views
tags:
long tail
hjharris
says:
A fascinating bit of deduction – the implications upon revenue streams all points to the profitability collating and finding information
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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://www.clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/ce18af22-a70d-49e8-af8d-a88bcb6bc5a7/8B4D1E38-2C18-47A8-ACDD-A15C9DF3F1F5/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://dondodge.typepad.com/the_next_big_thing/2007/05/why_1_of_search.html" href="http://dondodge.typepad.com/the_next_big_thing/2007/05/why_1_of_search.html" style="font-size: 11px;">dondodge.typepad.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://dondodge.typepad.com/the_next_big_thing/2007/05/why_1_of_search.html"><H3 class="entry-header"><A href="http://dondodge.typepad.com/the_next_big_thing/2007/05/why_1_of_search.html">Why 1% of search market share is worth over $1 Billion</A></H3></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://dondodge.typepad.com/the_next_big_thing/2007/05/why_1_of_search.html"><P>So, <STRONG>Google did 10.1 billion search queries</STRONG> in the US in the first quarter of 2007. Now lets look at <A href="http://investor.google.com/releases/2007Q1.html" target="_blank">Google revenues</A> of $3.66 Billion for the first quarter of 2007. The simple math is $3.66B in revenue divided by 10.1B search queries equals $0.36 per search. But, that would be comparing US searches to total revenue, so we need to do a little more math gymnastics.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://dondodge.typepad.com/the_next_big_thing/2007/05/why_1_of_search.html"><P><STRONG>Each 1% of search market share is worth over $100M in revenues</STRONG> - Here is the math. There were 7.3 billion searches performed in March of 2007. One percent of that is 73 million searches times $0.12 revenue per search or $8.76M per month. That translates to $105.1M in annualized revenue. </P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://dondodge.typepad.com/the_next_big_thing/2007/05/why_1_of_search.html"><P>So now we all understand why Yahoo, Microsoft, AOL, Ask, and a host of others are fighting hard for every 1% of search market share. The search business generates huge revenues and profits...even for competitors with just a small market share.</P></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;"> </td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/8B4D1E38-2C18-47A8-ACDD-A15C9DF3F1F5/blog/" title="blog or email this clip"><img src="http://content9.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>
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