Comment by JumpCrisscross
9 months ago
> that's also a big problem for their growth
I agree, but it’s a good early filter for conversion. The difference in quality, for me and everyone I’ve gifted a month to, is stark enough to make paying for search for the first time worth it. Given the absolute cost (for the cheapest tier, paid annually, less than $50) it’s a psychological hurdle more than a financial one for most Americans.
Also, drawing those eyeballs from the ad-driven engines has a disproportionate effect on their marginal ad prices (in the long run). So if you need a sense of vengeance to get you over the hill, there you go.
Regarding ad margins:
If kagi saturates the market of people that can afford to spend $50/year for a decent search engine, then Google ads will only reach people that cannot. This would greatly reduce the value of their ad inventory (far more than the percent market share they’d lose).