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Premium Listing becoming CPC
Premium Listing becoming like adwords!

 10:03 am on Apr 9, 2003 (gmt 0)

I have heard that Premium listing are becoming CPC with the same system as Adwords by the end of this year.

Can anybody confirm this?




 10:30 am on Apr 14, 2003 (gmt 0)


I am a bit confused. How can the right of first refusal apply if Google is refusing so sign new contracts?

We were told - no contracts beyond December, but the reason was trouble forecasting inventory fluctuations. We were given right of first refusal.


 7:23 pm on Apr 14, 2003 (gmt 0)

Every once is a while I slip up it the Premium spot for one reason or another and my sales increase 300%!
I want a crack at the spot.

wait to premium ads end,it will really cost you big time to get there.


 9:57 pm on Apr 16, 2003 (gmt 0)

Just heard the bad news from my rep. No new or renewed campaigns after June 1 st but they will honour all exsisting contracts.


 4:54 am on Apr 17, 2003 (gmt 0)

Premium ads over?

Are they simply rolling premium spots into adwords?


 5:06 am on Apr 17, 2003 (gmt 0)

they will honour all exsisting contracts.

hmmm... what is the maximum time these contracts run?

So on June 1 will existing adwords in the 1&2 slots without premium ads move up to the top locations? Or is google dumping the top ads entirely (after contracts expire). How will the new layout work?


 11:19 am on Apr 17, 2003 (gmt 0)

Apparently the first and second position of Premium becomes the first and second of adwords, and the current first position of adwords will be the third one of the new adwords system.



 11:24 am on Apr 17, 2003 (gmt 0)

Isn't that a coincidence, just today i received an answer from google about my response that i made a few months ago with some questions about premium listings.

They want EUR 40 for 1000 impressions! and they say ctr will be around 4%.
That would be 0.04 per impression and with 4% ctr it's Eur a lotto cents for 1 click.

r they gooing nuts? i get the premium for 0,07 cents per click with normal adwords.

<added>i should really read posts better, as of the 1st you say it will end. ok got it./added>


 2:45 pm on Apr 17, 2003 (gmt 0)

They want EUR 40 for 1000 impressions!

That is normal sometimes 50 EUR. If you can get the top spot for 7 cents where you are then keep on doing it. For me is is over 1 EUR for the premium spot in adwords so that is why premium ads worked.

You can see the logic though. No expensive account manager and everyone fighting to be at the top in a bidding war...more money for Google.

I am just going to have to put more cash aside for marketing now.


 2:47 pm on Apr 17, 2003 (gmt 0)

DK Roller

They are going to fase it out over time so no premium ads from the end of the year.


 4:44 pm on Apr 17, 2003 (gmt 0)

That would explain why I couldn't get a hold of the sales rep that I was trying to finalize a premium ads contract with.


 9:50 pm on Apr 17, 2003 (gmt 0)

Upside and downside...

UP - If you are in any of the 1-3 slots you will see a massive jump in CTR.

DOWN - If you got ads promoted to premium it won't be quite as easy to hold that position anymore. (Many advertisers didnt even know you could get up there)

UP - Minimum bids will be .05 for everything since nothing is fathered in now?

DOWN - Be prepared to pay more & take part in more bidding wars.

UP - For 'empty' terms, you can really 'own' them now. This is a big plus.

Far more up than down I think (for the avg advertiser), but much of my spend is on ads that have been promoted, so i'm crossing my fingers.


 10:50 pm on Apr 17, 2003 (gmt 0)


Very succinct summary. Im the only premium advertiser in my category (besides adwords that rotate up...and ebay/bizrate types) and my costs will definitely go up when merged with adwords.

The real opportunity will be the ability to get top of page on lower performing terms...and pay only when you get results.

General rule of thumb is that premium gets 2x the clickthrough....so the standard for clickthrough minimums on top locations will be lower compared to side location.

Shhh..don't let g___gle adwords editorial see this or the relevancy requirements may go up :)


 10:59 pm on Apr 17, 2003 (gmt 0)

That is great news for those of us wanting a crack at the top spot!



 11:05 pm on Apr 17, 2003 (gmt 0)

I thought there was something weird going on.

A couple days ago I saw one of my Adwords ads in a premium spot where there are no other advertisers for that keyword.


 11:53 pm on Apr 17, 2003 (gmt 0)

Our adwords have been showing up premium for some time now, figured theyd go with the adwords for maximum potential of profitting :D


 1:32 am on Apr 18, 2003 (gmt 0)

What do you figure is in it for Google? Why remove these ads?


 2:36 am on Apr 18, 2003 (gmt 0)

Jon_King -

As it is now, a lot of the premium spaces are empty. By moving adwords up into those spots, I think their overall click revenue will increase.


 2:41 am on Apr 18, 2003 (gmt 0)

Wonder if they might change the specs for AdWords, since premium listings have more chars thatn AdWords? Maybe they'll ask for 2 different creatives in case an ad moves up to the premium spot.


 4:21 am on Apr 18, 2003 (gmt 0)

I think that by moving the AdWords into the premium spot Google is not only filling unused ad space to get more clicks, but causing the top two spots on a keyword to be more valuable which would drive up the price level people bid on certain keywords.


 5:08 am on Apr 18, 2003 (gmt 0)

surely removing premium ads will have a roll on effect to the cost of standard adwords?


 6:57 am on Apr 18, 2003 (gmt 0)

Jon king said "What do you figure is in it for Google? Why remove these ads?"

Part of the problem for Google - I think - is that selling these top 'guaranteed number 1 or 2" spots on a CPM basis is like giving them away for nothing for some words. ie typically/historically - people will only pay say $10 - $50 per thousand impressions for any CPM campaign - irrespective of click through rates.

Being guaranteed the number 1 or 2 spot and paying CPM is actually cheap - if you knew what you were doing. If you can run (a relatively large) campaign on Adwords and can get over 10% ctr - Google Premium CPM is often absolutely cheap! If you struggle with .5% clickthroughs - then PPC is cheapest.

Look at the PPC prices for "gambling" or "hosting" keywords... where people are prepared to pay $US11.99 per click on overture today for the number 1 spot for 'hosting' or $US18.04 for 'casino'... imagine getting those at 'typical' CPM pricing...

Google premium was basically positioned with agencies as text banner ads - ie Google sold these premium positions effectively as text banner ads - I believe - as a 'way in' to the banner ad placement agencies and big corporates - by sell them something they could understand - marketing "impressions" in a fixed position.

Now - by educating the market, changing to the Adwords formula - they get to really 'monetise' these top spots.


 4:33 pm on Apr 17, 2003 (gmt 0)

I just heard that google was going to drop it's premium listings and replace them with the top two adwords listings. Those who bid the highest will now be placed on top of the page followed by the rest on the side. With 1$, 2$, even 3$ clicks on overture, expect to have the same with google...could this be why their projected revenue is going to double!?

Now there's going to be a huge bidding war just like on overture .....be prepared to have your advertising accounts take a hit!



 4:41 pm on Apr 17, 2003 (gmt 0)

Didn't see those threads.....just thought people should know. It's definately going to hit me in the pocket book - looks like I'm gonna have to brush up on my SEO ...hehe, no problem!


 4:53 pm on Apr 17, 2003 (gmt 0)

I buy adwords for many clients and yes it happens that we're on the top Premium Listings when we're the #1 bidder for a keyphrase. Makes lots of sense to me.


 5:02 pm on Apr 17, 2003 (gmt 0)

My understanding is that this has been the case for quite some time now, but ONLY if they don't have a PREMIUM advertiser.

I believe their working it this way:
Sell to an advertiser OR
give to the Highest Adword

However, in search terms where the bid isn't high, NO premiums will show up at all, even if ADWORDS are to the right.


 7:33 pm on Apr 17, 2003 (gmt 0)

The way I see it is I am now going to pile loads of cash into SEO. I know that I have seven months before my premiums bite the dust.


 3:11 pm on Apr 18, 2003 (gmt 0)

Clickfraud Alert!

I'm not prepared to pay the same amount of money for the top spot on a CPC basis.

In my opinion CPC is only good for people who want to dip their toe in the water . CPM is for real businessmen, and Google is alienating the big money.

A sad day.


 11:30 pm on Apr 18, 2003 (gmt 0)

The answer to all of your questions can be summed up in one phrase: "Effective CPM Rate".


 1:14 am on Apr 19, 2003 (gmt 0)

One of my clients saw a 50,000 plus per day drop in uniques abrubtly on the 9th. This change was not expected to have as big as an effect as it did.

This is why I concentrate on organic SEO with Google, every change that has come out of left field (Yahoo switching to Google, all of the mergers and acquisitions.....THIS) With all of these changes...I'm looking golden :)


 4:52 am on Apr 19, 2003 (gmt 0)

confirmed this week by Google rep (S. Cali) before year end Premium listings will be no longer. additionally, have you paid attention to where your premium listings appear? be very careful if you terms can be associated with related industries... I learned the hard lesson and researched my competitors and saw they are still paying for non-related impressions based on the search term they purchased cpm for. I don't understand why a firm like google would not be forthcoming and clarify it during their sales presentation........


 7:38 am on Apr 19, 2003 (gmt 0)

It has been confirmed that it depends on the country the Premium listings will end between june and dicember of this year.

In fact Google has got a Sales Meeting with all the Reps in Amsterdam next week to discuss just this. I hope they do not smoke too much GRASS and get too much out of this world!

The danger of joining Premium with Adwords is that the big guys with big budgets will be able to access to all the popular keywords more easily.



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