Buying market share - when all else fails, get your wallet out

Thu, 22 May 2008 00:00:00 +0000

Six searches are conducted via Google for every two on Yahoo and one on Microsoft Live . That’s not how Microsoft would like it. So the news from Microsoft last night (well, by British Summer Time anyway), CASHBACK!

Here’s how it’s worked so far. The search engines deliver paid-for results alongside so-called organic (not paid for) search results. When someone clicks on one of these paid-for results / aka “sponsored links” / aka “ads”, the search engine charges the advertiser. If these ads were served on an affiliate site, the affiliate site owner gets a share of that revenue.

So everyone is a winner. The search engine makes serious revenue (Google made $1.31 billion on revenues of $5.19 billion in the last quarter, the majority from search related ads), searchers see ads relevant to their search query, and the advertisers attract relevant visitors to their websites.

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Buying market share - when all else fails, get your wallet out