Essay About Network Effect And Googles Cost
Essay, Pages 1 (670 words)
Latest Update: August 17, 2021
Google CaseEssay Preview: Google CaseReport this essayThe network effect is defined as the effect that one user of a good or service e has on the value of that good or service to other users. If there are network effects it means that the value of a product or service is increased the more people that use it. The classic example is the telephone. The more people within a network the more valuable the telephone because the more people you are able to contact. The same applies to websites like EBay. The more people that frequent this website the greater the value to potential sellers and buyers. The same is true for paid search markets.
Pioneered by Overture, paid listings were essentially Sponsored Links that appeared near or adjacent to web search results. Advertisers bid on these various key words and the amount of their bid would determine where their ad would fall amongst the search results. This was a great idea considering nearly 70% of Internet commerce started with a web search and nearly 40% of web searches had commercial motivations. Overture was able to conduct this marketing scheme by having a revenue sharing contract with AOL, Yahoo, and MSN. Their cost-per-click (CPC) model was different from Googles cost-per-view model. Google charged advertisers whether or not the advertising was even clicked. However, in 2002 they changed their model to a modified CPC model in which they weighted CPC bids based on a ratio of an ads actual click
to a click.
As a result, they increased the size of their CPC and their revenue sharing was substantially lower.
There was also greater competition as there was no need to spend a large amount of money on a web search.
Now that Overture has consolidated the SEO operations, the focus is now on the market share and to help them grow.
Over the next year and a half, Yahoo will continue to use Overture as a service in a similar capacity. By this time of year, many of their customers will be able to view, download, and buy their website while being able to access their site on various devices. Also, the market share of their sites will be growing much faster than they had earlier. The company claims on their website that the average user will be used to using their site more and that 60% of their site visitors are using their information more often. While the average user is mostly buying, other companies such as Google and Yahoo will continue to use the site in a similar way as they have in the past.
Additionally, the team will continue with Overture as their web search engine for more than 20 years now. Overture is available to consumers and advertisers, but they’ll be able to customize the search criteria for sites they’re searching for, increasing the userbase, and reducing the cost of clicks and clicks.
Now that Google and Google Talk are out in full force, it’s time to look at what it has to offer to become an SEO specialist.
