Inspired by AdWords
Mark Kutts, a Google software engineer commented that AdWords was the inspiration for gRank. "If people are willing to pay for advertisements related to search words, we figured they'd be more willing to pay for actual placement in the search results."gRank will automatically auction off the search result placements on daily basis, similar to AdWords. More popular search terms are expected to fetch a premium going for over $100 per million search results.
When asked if Google thought gRank had the potential to squeeze out small businesses from top rankings of popular search terms, Barry Price the VP of Revenue, said "It might happen, but we are confident that the competition will be good for the industry." By industry it was clear he meant Google. gRank could generate revenue over $600 million a day.
Creating a New Industry
It could also create an entire new industry for rank marketers. Companies could purchase a rank position for a term, such as "Digital Camera" for the day and then resell it on an hourly basis to other website owners. Bradford Adam expects that "... rankings between 8AM and 9AM EST and PST when people are getting in to work and searching the internet could sell for a premium." The same goes for search rank placement near the end of the word day or early evening.Details are still being worked out, but pricing will be based on the number of results Google returns for a search term and where you want to be placed. For example "SEO Marketing" yields over 21 million results, so to be placed as in the number one position bids are expected to average $500 dollars a day.
Yahoo and Microsoft were contacted for comment, but did not reply to our questions about this new offering from Google.
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