What is the revenue of Bing?
Google
Microsoft
Meta- Bobby Duncan
Clarifications:-
1. Bing is the search engine, similar to google but provided by Microsoft.
2. What is the time period over which we are trying to estimate the revenue – lets say it is daily revenue.
3. Is it worldover revenue or revuene for a specific geography? lets consider revenue for India as I am more aware of this geography.
4. Also revenue can be interms of cost per 1000 impressions or cost per click depending on the goal the company is driving. For simplicity sake I am considering cost per click model as the end goal of the companies is mostly to redirect traffic to their website/webpage from the search engine and this is possible when user clicks on the ads.
Main equation:
Daily revenue = No. of ads clicked in a day * cost per click of the ad
No. of days clicked in a day = No. of of ads shown * % of ads clicked
No of ads shown = No. of ads shown per search result page* No. of search queries done per day * % of search results had ads.
No. of search queries done:
India has 1.3 b population.
Urban – 30%
Uban internet penetration is ~60%
thus internet users: 230 M
Rural population – 70%
penetration :30%
Rurual internet users : 270M
Within internet users we have :-
1. Power users: 5 searches per day, 10% population of urban where as only 1% population of rural internet users
2. Avg users : 1 search per day, 20% pop. of urban where as 5% of rural
3. infrequent users : 1 search / month, rest of the pop.
No. of search queries per day of urban: 165M.
Rural: 35M
200M queries –> now market share of bing is 20% (google is dominant player : 70%, 10% others and 20% bing)
thus 40M queries go to Bing.
No. of ads shown per query result page can be assumed as 3.
% of query results had ads – 50%
Thus No. of ads shown: 60M ads
No.of ads clicked can be assumed as 20%
Cost of CTR: Rs 1$ per ad
12M