The average cost per click is 54 cents on Google

December 10, 2004

On average, Google earns about 9 cents for each search query done on its search engine-- a pretty good return.

With the average cost per click being $0.54 on Google and 17% of all US users clicking on a paid link, Google has constructed a formula that many in the search community hope to adapt to their own engines.

Whether it be paid inclusion, AOL keywords, paid search, contextual advertising, or whatever, search is where the online marketing budgets are going.

Battelle reports that Google gets nearly a dime for every search it serves in the US. Let’s do the math, I have a search engine which averages 50,000 searches per month - the BlogSearchEngine.

If I were monetizing BSE in the same successful fashion as Google I would be earning $4,500 from search - assuming all of that traffic from the United States. Not so shabby.

A recent report from Majestic, based on proprietary Comscore data, notes:

-- 98 percent of GOOG revs are from paid search. 65% of revs are domestic.

-- Q3 domestic growth driven by 7% quarter to quarter increase in paid introductions (paid clicks), to 964 million, and a 2% quarter to quarter increase in average price per click, to 5%.

-- Average CPC: 54 cents, up a cent quarter to quarter.

-- Revenue per query grew 8.3% quarter to quarter to nine cents. (That’s right, every search we do on Google makes them nearly a dime, on average).

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-- Overall US searches grew 6% quarter to quarter, Google powered searches grew by .2%.

-- In Q2, 51.9% of all searches on the Google Network included at least one paid listing.

-- Of those, 32% include at least one paid introduction.

That’s nearly 17% of all US searches ending up with a click on a paid link.

Source: Search Engine Journal

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