Aravind Srinivas

For them to do this for every single query is a lot of money to be spent because their search volume is so much higher.

For them to do this for every single query is a lot of money to be spent because their search volume is so much higher.

Yeah. So before I explain the Google AdWords model, let me start with a caveat that the company Google or called Alphabet, makes money from so many other things. And so just because the ad model is under risk doesn't mean the company is under risk. Like, for example, Sundar announced that Google Cloud and YouTube together are on a $100 billion annual recurring rate right now.

Yeah. So before I explain the Google AdWords model, let me start with a caveat that the company Google or called Alphabet, makes money from so many other things. And so just because the ad model is under risk doesn't mean the company is under risk. Like, for example, Sundar announced that Google Cloud and YouTube together are on a $100 billion annual recurring rate right now.

Yeah. So before I explain the Google AdWords model, let me start with a caveat that the company Google or called Alphabet, makes money from so many other things. And so just because the ad model is under risk doesn't mean the company is under risk. Like, for example, Sundar announced that Google Cloud and YouTube together are on a $100 billion annual recurring rate right now.

So that alone should qualify Google as a trillion-dollar company if you use a 10x multiplier and all that. So the company is not under any risk even if the search advertising revenue stops delivering. No, so let me explain the search advertising revenue for Artnext. So the way Google makes money is it has the search engine. It's a great platform.

So that alone should qualify Google as a trillion-dollar company if you use a 10x multiplier and all that. So the company is not under any risk even if the search advertising revenue stops delivering. No, so let me explain the search advertising revenue for Artnext. So the way Google makes money is it has the search engine. It's a great platform.

So that alone should qualify Google as a trillion-dollar company if you use a 10x multiplier and all that. So the company is not under any risk even if the search advertising revenue stops delivering. No, so let me explain the search advertising revenue for Artnext. So the way Google makes money is it has the search engine. It's a great platform.

It's the largest real estate of the internet where the most traffic is recorded per day. And there are a bunch of AdWords. You can actually go and look at this product called adwords.google.com where you get for certain AdWords, what's the search frequency per word. And you are bidding for your link to be ranked as high as possible for searches related to those AdWords.

It's the largest real estate of the internet where the most traffic is recorded per day. And there are a bunch of AdWords. You can actually go and look at this product called adwords.google.com where you get for certain AdWords, what's the search frequency per word. And you are bidding for your link to be ranked as high as possible for searches related to those AdWords.

It's the largest real estate of the internet where the most traffic is recorded per day. And there are a bunch of AdWords. You can actually go and look at this product called adwords.google.com where you get for certain AdWords, what's the search frequency per word. And you are bidding for your link to be ranked as high as possible for searches related to those AdWords.

So the amazing thing is any click that you got through that bid, Google tells you that you got it through them. And if you get a good ROI in terms of conversions, like people make more purchases on your site through the Google referral, then you're going to spend more for bidding against AdWords. And the price for each AdWord is based on a bidding system, an auction system. So it's dynamic.

So the amazing thing is any click that you got through that bid, Google tells you that you got it through them. And if you get a good ROI in terms of conversions, like people make more purchases on your site through the Google referral, then you're going to spend more for bidding against AdWords. And the price for each AdWord is based on a bidding system, an auction system. So it's dynamic.

So the amazing thing is any click that you got through that bid, Google tells you that you got it through them. And if you get a good ROI in terms of conversions, like people make more purchases on your site through the Google referral, then you're going to spend more for bidding against AdWords. And the price for each AdWord is based on a bidding system, an auction system. So it's dynamic.

So that way the margins are high. By the way, it's brilliant. AdWords is brilliant. It's the greatest business model in the last 50 years.

So that way the margins are high. By the way, it's brilliant. AdWords is brilliant. It's the greatest business model in the last 50 years.

So that way the margins are high. By the way, it's brilliant. AdWords is brilliant. It's the greatest business model in the last 50 years.

Actually, to be very fair, this model was first conceived by Overture. Mm-hmm. And Google innovated a small change in the bidding system, which made it even more mathematically robust. I mean, we can go into the details later, but the main part is that they identified a great idea being done by somebody else and really mapped it well onto like a search platform that was continually growing.

Actually, to be very fair, this model was first conceived by Overture. Mm-hmm. And Google innovated a small change in the bidding system, which made it even more mathematically robust. I mean, we can go into the details later, but the main part is that they identified a great idea being done by somebody else and really mapped it well onto like a search platform that was continually growing.

Actually, to be very fair, this model was first conceived by Overture. Mm-hmm. And Google innovated a small change in the bidding system, which made it even more mathematically robust. I mean, we can go into the details later, but the main part is that they identified a great idea being done by somebody else and really mapped it well onto like a search platform that was continually growing.