26 Dec

The power of numbers

Google claimed (at the time of writing) that they serve around 63 000 searches per second. That means that 63 000 people view a Google SERP every second somewhere on our globe – that translates to 226 800 000 SERPs viewed per hour, every day of every year. So, in a typical day of 24 hours, almost 5.5 billion people stare at a Google SERP. That is about ¾ of the population of the whole earth. This is sometimes called “screen eyeballs” – referring to users viewing something on a computer or mobile phone screen.

Let’s take this further.  If this 5.5 billion people each face an advertisement of some kind on these SERPs, and only 1% of them actually respond to one of these ads, that means that around 55 million people will respond to one advertisement each day. Let’s further assume that only 1% of these responders actually buys something from that ad – that is a miniscule percentage (1% of 1% is only 0.01%). However, due to the power of numbers, this 0.01% is still about half a million people. If the advertisers make an average profit only $1 per item sold, that is a total profit of half a million dollars PER DAY spread across all the advertisers.

This explains the success of Google’s paid advertising schemes – they obviously get a small amount of money (called the bid price) for each click on one of their ads. If that average bid price is $0.10 (ten dollar cents), that gives Google a profit of: $0.10 x 55 million clicks (it is not the purchasing action that counts, but the click on an ad). That is $5.5 million – PER DAY……  

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