Google Auctions 
I wondered aging after Google anounced a 7x increase in profit last quarter - how do they make all that money? I really didn't know how their ad system generated income. This USA Today article cleared it up a bit:
| | Companies bid on words that relate to their business. For instance, a Florida lawyer would reach searchers looking for "Florida lawyer" and pay $15.49 each time the ad was clicked. That phrase cost just $2.02 in July, Lavinsky says. Other big jumps: "graphic design Chicago," from $1.01 to $7.98; and "donate time share," from 50 cents to $11 a click. |
| | The most expensive phrase ‹ "Chicago personal injury attorney" ‹ sells for about $50, Lavinsky says. Lawyers are willing to pay to attract clients. A year ago, that keyword combination sold for $30, Lavinsky says. |
| | Companies big and small spend countless hours and strategies trying to master the science of rising to the top of Google and Yahoo's regular search results. |
| | Investing in paid search ads guarantees prominent placement. |
So I can google Chicago personal injury attorney, click on one of the sponsered links and I make some lawyer in Chicago give Google 50 bucks?! Wow!
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