Larry Kim of WordStream published an article last week which talked about the sources of Google’s revenue stream last year. It kind of blew my mind! Did you know that 97% of Google’s $33.3 billion in revenue, or just a mere $32.2 billion, comes from selling ads? Is that mind boggling? Well no, look at its stock price! What is certainly mind boggling, however, are the category sources of the major advertising revenue.
What the article talks about that amazes me are “what keywords demand the highest costs per click and are most competitive in terms of high search volume.” These keywords mostly responsible for a large part of Google’s profits, and, of course, the most expensive. The report gathers those keywords into categories with certain weighting factors added. Of course, this represents industries who need to spend considerably to acquire new customers. OK, so it is not perfect, but it is a telling graphical depiction.
You get some idea of the nature of profitability Google AdWords generates. No wonder I am so anti-paid advertising on the Web and why I only use free social media tools. Who really wants to get into a bidding war within an auction framework? Well, that’s not for the small business owners and managers I deal with.
The best part of the article, especially for small business owners and managers, are the tips near the end. These work for search engine optimization as well as pay per click. They include (which I have adjusted to the SEO market place):
- Target specific long tail keywords that allow you to target market
- Weed out keywords that aren’t relevant to your business.
- Make sure your page content is Relevant to those keyword strings.
- Optimize your landing page and keep testing responses and results
I will also add –
- Make sure every page on your Web site is optimized for individual long tail keywords.
Read the rest of the article with more detail about the categories.
And jump start your education and read about using Search Engine Optimization.