

Where Google Really Makes Its Money - funthree
http://www.wordstream.com/articles/most-expensive-keywords

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bialecki
Maybe I'm missing something but the title seems to imply that Google makes
most of it's cash from the very top keywords, but I don't see any evidence of
that.

Anyway, very interesting what the top keywords are. Does anyone know why "cord
blood" is so expensive? A close friend is involved with a cord blood bank and
I know there's great potential in cord blood, but I'm not sure why it's such
an expensive keyword.

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dbfclark
The point here is really about what you might call advertising economies of
scale -- if one good nets its producer $10 per sale and another $100/sale but
the price and effectiveness of advertising are the same, it's much more
exciting to advertise the second than the first. Google is segmenting these
markets in a way that newspapers and tv can't: only one person can buy the top
keyword per search, so while TV advertising is wall-to-wall insurance, loans,
and cars, the same phenomenon expresses itself in google terms through high-
priced keywords.

As to cord blood:

<http://en.wikipedia.org/wiki/Cord_blood>

claims that

"The cost of private cord blood banking is approximately $2000 for collection
and approximately $125 per year for storage, as of 2007."

which sounds to me like a pretty high-margin (in dollar terms) business, hence
the attractiveness of advertising.

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Gullanian
I find it hard to believe companies pay Google $55 per click and that is in
any way profitable for them. There must be more +EV opportunities out there
for advertising. But I'm probably mistaken as usual.

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vgurgov
This is awesome tip for smart web entrepreneurs looking for new startup ideas.

