Tuesday

What Does Google Have That Microsoft Doesn't?

Google has the greater percentage in search engine users, and makes a huge amount of money from its advertisers. You'd think Microsoft's Bing would be making a good amount of money too. So why doesn't it? Google has become the "big man on campus". Who is really able to compete with it? The way Google makes its money is by the CPC (Cost Per Click), meaning, that the little advertisement pages sold to these advertisers are set on a price depending on the number of clicks by a user. You'd think there would be a "set" price for these, but apparently there isn't. Google prices its CPC at 3 o4 times the price of Bing. Here are examples of CPC differences:



While this may be good for advertisers because they're paying less to get advertised, Bing will not get the same revenue as Google because of the fewer amount of clicks being received due to the lack of users. Microsoft does have to pay about the same amount of costs as Google to build and maintain the search engine, so no wonder it has trouble to even be considered a competitor against Google. And according to Nathan Newman, founder of Tech-Progress.org, Google (unseen to many users) controls many aspects of the advertising infrastructure. It's basically the "big dog" and has abused monopoly power by raising it's CPC price. He also claims that Google is harmful to the online ecosystem of e-commerce. He may be making a point, but that's the world we live in, I think. Well want to be at the top: powerful, wealthy, known. Will that every change? Not soon, that's for sure.

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