Search Engines are BIG Business

roughhewnstupidInternet and Web Development

Nov 18, 2013 (4 years and 7 months ago)


Search Engines are BIG Business

The Business Value of Search Engine

Users looking for products would type the product name into a
search engine (28 percent), browse shopping 'channels' (5
percent) or click on ads (4 percent).

Jupiter Media Metrix & NPD (March 2001)

Nine out of 10 users visit a search engine, portal or community
site each month, and revisit them nearly five times per month.

Nielsen//NetRatings (May 2001)

Search engine placement (i.e., make your site rank at the top of
the search result) is the best way to get a loyal audience

Forrester Research Media Field Study

Search Engine Marketing (SEM)

Search Engine Marketing (SEM) or Search Engine
Placement/Positioning (SEP) helps a web site:

To be included in as many search engines as possible

To have high ranking in the result for search keywords relevant to the
business of the web site

E.g., for, relevant keywords could be bank, deposit,
invest, investment, loan, etc.

August, 2002: Lloyds TSB Insurance spent an estimated one million
pounds to buy 1,000 insurance
related keywords on Google. The one
year partnership marks the largest single online advertising deal in
Europe in recent memory.

Google has an estimated 7.5 million user base in UK (according to
Nielsen/NetRatings May 2002 stats)

The campaign is to generate traffic and increase online sales for
Lloyds TSB Insurance and its Screentrade brand.


Search engines that rank results purely based on how much the
sites pay for the query keywords

Usually sites can bid for keywords in real time

Market leader

Overture (, formerly, holds a
patent on pay

Big money

eSpotting had guaranteed Lycos at least $9.2 million in its three
year contract signed in 2001.

Business Models

SEC provides search results for portals

SEC charges advertisers and shares the revenue with portals

SEC widen its distribution channels using the portals

Portals get extra income in addition to its own advertisement

Contract for Google to provide advertisements to AOL users is
estimated to worth US$ 60m to US$ 100m

Overture provides

Lycos: five listings at the top of search result pages

Yahoo!: three listings at the top and two at the bottom of result page

MSN: three listings at the top of each result page

Big money

eSpotting had guaranteed Lycos at least $9.2 million in its three
contract signed in 2001.

Other Major Business Deals

July 2002: 3
year contract between Ask Jeeves and Google to
carry the latter's AdWords listing

Anticipated ad revenue of 100 million US$ over 3 years.

"Jeeves said it had seen a 40 percent increase in the business
during the first half of the year, thanks in large part to new
based ad products."

Google’s Business Profile


8/1998: US$ 1m from founders (Brin and Page), and families and friends

2/1999: US$ 25m from Kleiner Perkins and Sequoia Capital

2000: US$ 10m from Yahoo!


2001: US$ 70m (estimated)

Income from providing search to Yahoo! US$ 7m/year


2001: 250

2002: 400 (15% with Ph.D. degrees)

Google’s Business Profile

Hardware infrastructure:

15,000 servers in 5 data centers (8/2002)

Number of hits per days = 50 million (2002)

Number of pages = 2.1 billion (2002)


Advertisement: Cost
Click Adword program (after experiencing
with impression
based scheme for a few months)

Provides search service to over 130 companies and government
agencies (2002)

Sells Google Appliance: Google
Box for intranet applications


Google Inks Ad Deal With U.K. Insurance Co.