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Pinterest vs Snapchat: Purchase intent and valuation

Online advertising is all about purchase intent, right? To quantify just how valuable the purchase intent of search is, it’s worth thinking about revenue per search. In 2006 Google’s revenue per 1000 searches was $45, in 2009 it was $35. (I’d like to put in a more recent datapoint, but my cursory Googling is coming up short.)

Keep in mind that Google search ads are non-interruptive units. By way of contrast, let’s talk about advertising on YouTube. These units either make you wait to watch the video, or takeover part of the video player while it is playing. Despite the fact these ads are designed to be more “engaging”, eCPMs for video are far lower vs search. Here are some approximations of revenue from top publishers on YouTube according to Peter...

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