Google Profits Surge on Strong Ad Demand • Hacker News Board

Re: Google Profits Surge on Strong Ad Demand

#21

Post by em500 » Thu, Jul 28, 2016, 9:00 PM UTC

ariwilson wrote: post #7

vasaulys wrote: post #2

Its so bizarre to me. You'd think there would be a finite appetite for advertising, but apparently not.

There can be both a finite appetite for advertising and increasing Google revenue as long as Google is either making advertising more effective (expanding the market), taking revenue from other publishers (controlling the market), or making money outside of advertising. Some random stats I found estimate that advertising is currently a $500B yearly industry, which means Google is only 15% of the industry.

Right, I found estimates of $600B yearly ad spend. To put that into context, total annual spending (aka world GDP) is over $70T, meaning that less that 1% of all spending in the world is on advertising.

Re: Google Profits Surge on Strong Ad Demand

#22

Post by lucb1e » Thu, Jul 28, 2016, 9:00 PM UTC

api wrote: post #9

This is all good news for our industry. Soft numbers among the top players trickle down in the form of reduced demand and investor interest for earlier stage companies. Good numbers send a signal that the industry is healthy. Edit: wow stepped on a mysterious hater button. :P

> our industry

Who does 'our' refer to here?

Clicking your profile, it's not clear whom you work for, so I sure hope it doesn't refer to hackers of hacker news in general.

Re: Google Profits Surge on Strong Ad Demand

#23

Post by lucb1e » Thu, Jul 28, 2016, 9:02 PM UTC

asakurasol wrote: post #17

PokemonGo just got a callout in the earnings call.

I don't understand your comment. It got a "callout in the earnings call", what does that mean? Does the "earnings call" refer to a part of the article I can't read (paywall) or are you making an assumption about this being because of PokemonGo and Google/Alphabet internally mentioning PokemonGo in a conference call?

Re: Google Profits Surge on Strong Ad Demand

#24

Post by kyrra » Thu, Jul 28, 2016, 9:04 PM UTC

em3rgent0rdr wrote: post #15

paywall;dr Could major election year be a significant contributor?

use the "web" link under the article link. Does a search for the title. Getting to WSJ from Google's search page bypasses the paywall.

Re: Google Profits Surge on Strong Ad Demand

#25

Post by lucb1e » Thu, Jul 28, 2016, 9:05 PM UTC

dangrossman wrote: post #18

seibelj wrote: post #4

Mobile app ads keep paying more and more. I'm regularly getting $1 per click, and sometimes as high as $5 (finance category). I can't remember ever getting this much for websites. I'm using google admob

As a web publisher, I earn on average $0.42 per click (mostly from http://www.daterangepicker.com ). As a web advertiser, I pay on average $1.76 per click (for SaaS stuff with a high CLTV). $1-5 per click for app ads makes sense if the apps have a high CLTV, or the campaigns are temporary as they often are -- they just need to get enough installs to start ranking in app store categories, after which that becomes a fr…

Wow, that's a huge gap between spending and earning. Do ad networks have costs other than employees and hosting or did just nobody undercut that price yet?

Edit: What is CLTV? I tried looking it up but not sure what I found makes sense.

Re: Google Profits Surge on Strong Ad Demand

#26

Post by jvolkman » Thu, Jul 28, 2016, 9:06 PM UTC

lucb1e wrote: post #23

asakurasol wrote: post #17

PokemonGo just got a callout in the earnings call.

I don't understand your comment. It got a "callout in the earnings call", what does that mean? Does the "earnings call" refer to a part of the article I can't read (paywall) or are you making an assumption about this being because of PokemonGo and Google/Alphabet internally mentioning PokemonGo in a conference call?

Alphabet 2016 Q2 Earnings Call: https://www.youtube.com/watch?v=EVpWjo023cE

Re: Google Profits Surge on Strong Ad Demand

#27

Post by runako » Thu, Jul 28, 2016, 9:08 PM UTC

lucb1e wrote: post #25

dangrossman wrote: post #18

Earlier quoted context omitted.

As a web publisher, I earn on average $0.42 per click (mostly from http://www.daterangepicker.com ). As a web advertiser, I pay on average $1.76 per click (for SaaS stuff with a high CLTV). $1-5 per click for app ads makes sense if the apps have a high CLTV, or the campaigns are temporary as they often are -- they just need to get enough installs to start ranking in app store categories, after which that becomes a fr…

Wow, that's a huge gap between spending and earning. Do ad networks have costs other than employees and hosting or did just nobody undercut that price yet? Edit: What is CLTV? I tried looking it up but not sure what I found makes sense.

In addition to the direct costs of operating ad networks, it's likely/possible that the poster is targeting different people with his ads than are the advertisers whose ads run on his site.

CLTV: Customer Lifetime Value. Roughly, how much revenue can you expect to earn from a customer over the entire time they interact with your business.

Re: Google Profits Surge on Strong Ad Demand

#28

Post by [deleted] » Thu, Jul 28, 2016, 9:08 PM UTC

[deleted]

Re: Google Profits Surge on Strong Ad Demand

#29

Post by paulpauper » Thu, Jul 28, 2016, 9:11 PM UTC

Amazon, Facebook , Google - three stocks to rule the world. They cannot do any wrong, and I don't mean that sarcastically. Buying these stocks is like investing in the companies that are building the matrix, but it's real life.

It's just nuts..even Microsoft and Cisco in the 90's..the growth was finite, but there is no limit to Facebook, Google and Amazon. Every quarter is a crusher..over and over, year after year.

Just when you think their growth is 'stalled out', something new comes along. Now it's mobile.

The small mobile screen is perfect for advertising. Adsense ads are everywhere. Sometimes major brands try adsense alternatives but always go back because adsense pays the most and has the most advertisers.

Re: Google Profits Surge on Strong Ad Demand

#30

Post by akavi » Thu, Jul 28, 2016, 9:12 PM UTC

paulpauper wrote: post #29

Amazon, Facebook , Google - three stocks to rule the world. They cannot do any wrong, and I don't mean that sarcastically. Buying these stocks is like investing in the companies that are building the matrix, but it's real life. It's just nuts..even Microsoft and Cisco in the 90's..the growth was finite, but there is no limit to Facebook, Google and Amazon. Every quarter is a crusher..over and over, year after year. J…

> in the 90's..the growth was finite, but there is no limit to Facebook, Google and Amazon.

"This time, it's different."