DuckDuckGo Business Model: How Does DuckDuckGo Make Money?

DuckDuckGo Business Model

What is DuckDuckGo?

DuckDuckGo s an internet search engine that focuses on users’ privacy. The website started its operations in 2008 and is currently one of the top search engines worldwide. However, it is not on the same level as some other names, such as Google, Yandex, Bing, etc. Despite that, DuckDuckGo has created a niche among the privacy-conscious audience. The site’s primary visitors value it for its focus on privacy.

DuckDuckGo started its operations in 2008 through Gabriel Weinberg. The founder is an entrepreneur who also launched Names Database. However, that network has now become defunct. Weinberg used self-funding to power DuckDuckGo. However, in 2011, it received the backing of Union Square Ventures and several other angel investors. The engine uses Perl, JavaScript and Python and runs on Nginx, FreeBSD and Linux.

After the investment by the venture firm and angel investors, the company started growing. In 2012, it averaged 1.5 million searches every day. Similarly, the platform reported $115,000 for 2011, although only having three employees. Over the years, the company kept growing and started competing with several other search engines. Similarly, DuckDuckGo also entered several partnerships, which helped with its growth.

DuckDuckGo also had a community website, duck.co, that allowed the public to discuss the platform. Through this site, they could report problems, discuss the expansion of the engine, request features and discuss open-sourcing the code. However, the platform took it down and redirected it to its primary search engine. DuckDuckGo also has several other domain names that direct users to its platform.

Although initially, DuckDuckGo was a web-based search engine, it extended its engine in 2018. For example, the platform introduced its mobile web browsers in that year. Similarly, it revamped its browser extension and mobile app with a privacy focus. The company also expanded its services to several operating systems. Furthermore, it also announced the use of Apple Maps for any map-related searches.

Today, DuckDuckGo ranks among one of the top search engines. The platform reported over 101 million average searches daily. Although that is not close to some other names like Google and Bing, it has grown significantly over the years. Apart from its search engine, DuckDuckGo also provides several other services. It is also the primary search engine for most privacy-focused web browsers on desktop and mobile.

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How does DuckDuckGo work?

As mentioned, DuckDuckGo is similar to other search engines. Users can visit its website and put a query into the search box. From there, the platform uses that query to search for online results. Once it does so, it provides those results to users. Users can then choose the option they sought and visit the website. However, this process occurs differently behind the scenes compared to other engines.

DuckDuckGo primarily focuses on user privacy. Usually, other search engines track users’ searches and other activities. On top of that, those engines also share that information with third parties. For example, Google and Bing send search terms to the website visited. Similarly, each search engine collects information through several identifiers. Through this information, they can identify users even outside the search engine.

DuckDuckGo terms this process as “search leakage”. Instead, the platform prevents any information from users from leaking. When users click on a link, DuckDuckGo redirects them to their preferred result. However, it does so in the most private manner possible. Similarly, it does not share any information about users with those pages. Therefore, they cannot use personal information to track those users.

DuckDuckGo also offers users an encrypted version. With this version, the platform automatically changes links from various websites to point to the encrypted version. These may include Facebook, Twitter, Amazon and Wikipedia. This way, it ensures users are safe from any malicious intent. Similarly, it does not compromise user security when providing its services.

DuckDuckGo also works through its mobile app and extension. Apart from these, several web browsers integrate their features within them. Therefore, those users don’t make an extra effort to use the platform and its services. These versions also used optimized code to ensure user information remains safe from any leakage. In essence, they use the same features offered by DuckDuckGo.

Overall, DuckDuckGo works similarly to Google and Bing. Most operations on the website have similar experiences for users. However, the platform works differently on the backend due to the focus on privacy. Similarly, it uses its index for searches, which may differ from other engines. Other than that, the user experience is similar to other search engines.

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What is DuckDuckGo’s business model?

Primarily, DuckDuckGo operates on an e-commerce business model. The company uses the internet to reach a wide range of audiences. Through this business model, DuckDuckGo offers its platform to users worldwide. While the e-commerce business model helps the company attract customers, it does not explain its revenues. Instead, the company makes money through a different business model.

DuckDuckGo uses an ad-based business model. This model is similar to other providers like Google and Bing. Through this model, the platform displays ads on its website. Users view these ads and may click on them if interested. This process allows DuckDuckGo to make money. Similarly, the advertisements use keywords to target a specific audience. However, the company does not compromise user privacy when displaying these ads.

DuckDuckGo also uses an affiliate business model. Through this model, the platform acts as an affiliate for various partners. Every time a user searches for similar items, DuckDuckGo provides them with a search result with an affiliate link. If users purchase those products through that link, the company makes money from a commission.

However, the affiliate business model is not similar to Google and Bing. DuckDuckGo makes money through affiliations which the other providers do not utilize. This new revenue generation model allows the platform to benefit from more revenue than others. Primarily, DuckDuckGo partners with Amazon and eBay within the affiliate model.

Overall, DuckDuckGo makes money from serving ads and affiliate relationships. However, these revenue models do not compromise user privacy. The company also does not leak any information from search queries. Instead, it uses a keywords-based model to analyze the ads that it must display.

How does DuckDuckGo make money?

As mentioned, DuckDuckGo uses several business models. These business models allow the company to make money from different sources. Primarily, it uses an ad-based strategy to generate revenues from displaying ads. However, it may also make money from affiliate promotions. On top of these, DuckDuckGo also earns by licensing its tracker tool. An explanation of what each of these is below.

Advertising

The primary source of revenues for DuckDuckGo is its advertising-based revenue streams. The company uses keyword advertising to a target audience. However, it is not similar to other search engines. With DuckDuckGo’s system, advertisers bid on the process. Therefore, they pay the company to appear on top of specific search queries based on keywords.

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Once a user searches for that query, the ad appears on the platform. DuckDuckGo makes money every time a user clicks on the displayed ads. While it may be similar to Google and Bing, it does not compromise user privacy in doing so. Similarly, it does not use target ads, being common among the other platforms. Instead, the keywords suffice to display ads to a specific audience.

Affiliate commission

As mentioned, DuckDuckGo also makes money from revenues through affiliate commissions. It is similar to advertising revenues. However, users must click the link and buy the underlying product or service. Only then, DuckDuckGo receives a commission, which depends on its contract with the partner. Primarily, they include Amazon and eBay. However, DuckDuckGo also has other partners.

With this process, users have to click on the displayed affiliate link. However, they must also buy the product within 24 hours. Some partners also pay the platform if users buy other products after DuckDuckGo redirects them. After the process completes, DuckDuckGo receives a percentage of the revenues that the partner makes.

Licensing

DuckDuckGo’s licensing revenues are relatively new. The platform introduced the Tracker Radar, a dataset about hidden trackers. Through this service, DuckDuckGo provides information for other companies to use. These trackers can pick various data points. These may include browsing, location, search history, and shopping.

The Tracker Radar provides an overview of the most prevalently used trackers and their tracking behaviours. This information is available for free use online. However, businesses that use it for commercial reasons must acquire a license from the platform. In exchange, they must pay a license fee, which constitutes income for DuckDuckGo.

Conclusion

DuckDuckGo is a search engine that focuses on user privacy. The platform is similar to top names like Google and Bing. However, it does not compromise privacy like those platforms. DuckDuckGo uses several business models based on the e-commerce model. Similarly, the platform makes money from three sources, as listed above.

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