Estimation question

What is the revenue of Bing?

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What this question tests

Fermi estimation using search volume and ad monetization rates.

How to approach it

  1. Estimate Bing's search query volume as a fraction of Google's, using a rough market-share assumption, e.g. 5 to 10%.
  2. Estimate revenue per search benchmarked loosely against Google's known ad monetization rate.
  3. Multiply queries per day by revenue-per-search by days in a year to estimate annual revenue.
  4. Sanity-check against the general knowledge that the parent company reports a search advertising segment.
  5. State the final number as a range, not a single figure.
  6. Flag which assumption drives the most uncertainty.

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