Danny Sullivan on Google and paid search

Dec 14, 2015 by

Danny Sullivan on Google and paid search

DANNY SULLIVAN: What’s going on with Google’s money-gushing search business?

Below is Danny Sullivan’s full presentation about what’s going on with Google’s search business — both what we know and what we don’t.

Search is the biggest slice of the pie of all online ad spending in the US. It’s about 50% of all ad spending, when you take into account mobile and desktop ads.

Search is the biggest slice of the pie of all online ad spending in the US. It's about 50% of all ad spending, when you take into account mobile and desktop ads.

Digital ad spending is about to overtake TV — largely fueled by search. So, Google’s in a great position, right?

Digital ad spending is about to overtake TV — largely fueled by search. So, Google's in a great position, right?

“It’s a disaster, everything’s terrible!”

"It's a disaster, everything's terrible!"

Not quite.

Not quite.

Lesson:

Lesson:

How do you make sure that you sell more ads? A few ways …

How do you make sure that you sell more ads? A few ways ...

Google used to allow merchants to list their products in its shopping section for free, but in 2012 it changed its rules. Amazon is one notable retailer that refuses to pay, so it won’t show up in Google Shopping.

Google used to allow merchants to list their products in its shopping section for free, but in 2012 it changed its rules. Amazon is one notable retailer that refuses to pay, so it won't show up in Google Shopping.

Sullivan on the move: “This was a huge, huge change for Google. It was a 180-degree reversal on something that they had previously literally called ‘evil.’ When they went public they said, ‘You should never do shopping search and charge people to be in it. That would be an evil thing.’ But then they decided, ‘This kinda works out really well. We can make a lot of revenue off of that.’ So they completely switched it over.”

Ditto with other things.

Ditto with other things.

You can now book hotels on Google.

You can now book hotels on Google.

Cost-per-click is one of the few metrics Google gives during its earnings reports, but:

Cost-per-click is one of the few metrics Google gives during its earnings reports, but:

You never really know what’s causing lower CPCs.

You never really know what's causing lower CPCs.

We never get raw numbers for either of these.

It’s all thrown into one big pot.

It's all thrown into one big pot.

But if you go through “top apps” on iTunes, there are very few search apps, with Amazon as a big exception. But Google is on there.

But if you go through "top apps" on iTunes, there are very few search apps, with Amazon as a big exception. But Google is on there.

Google use is strong from its app as well as on the mobile web.

Google use is strong from its app as well as on the mobile web.

“This is a sign of how smart and forward-looking the company really is.”

"This is a sign of how smart and forward-looking the company really is."

Here’s what it looks like:

Here's what it looks like:

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