What type of revenue generation model is Google using when it generates revenue by allowing advertisers to bid on common search terms?

Question

BlackTom AI · Accepted Answer

Let’s break down the question by looking at the nature of the revenue model described.
Option 1: Analytical. This term typically refers to data analysis or analytics activities, not a revenue model based on selling advertising space. It doesn’t capture the idea of advertisers bidding on search terms.
Option 2: Analytics. Similar to Analytical, analytics refers to examining data to extract insights. It is not a monetization model tied to paid advertising on search terms.
Option 3: Applications. This would suggest revenue from software products or services, like apps, rather than a bidding-based advertising model on search queries. It does not describe how Google monetizes search terms through ads.
Option 4: Adwords. This describes the pay-for-performance advertising model where advertisers bid on keywords to have their ads shown in search results. This matches the description of generating revenue by letting advertisers bid on common search terms, making it the correct category for this scenario.
In summary, the scenario centers on selling ad space through keyword bidding in search results, which aligns with an advertising auction model. The other terms (Analytical, Analytics, Applications) refer to data processing or product categories rather than a revenue model based on keyword bidding in search advertising.

MANAGEMENT INFORMATION SYSTEMS CIS 3010-16 (93684) Exam Two

What type of revenue generation model is Google using when it generates revenue by allowing advertisers to bid on common search terms?

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