homepage Welcome to WebmasterWorld Guest from 54.242.126.126
register, free tools, login, search, pro membership, help, library, announcements, recent posts, open posts,
Become a Pro Member
Home / Forums Index / Google / Google AdSense
Forum Library, Charter, Moderators: incrediBILL & jatar k & martinibuster

Google AdSense Forum

    
When SERPs change....
I monitor my Adsense earnings
bnhall

10+ Year Member



 
Msg#: 5119 posted 6:33 am on Feb 7, 2005 (gmt 0)

Whenever there's a change to the Google SERPs, I pay ultra close attention to any impact this may have on my Adsense earnings.

Surely Google does the same? In other words, when they implement an updated algorithm, do their Finance guys monitor the impact to Google's Search & Content based revenue? Aren't earnings attributed to their "network of content partners" (i.e. us!) some 50% of their net revenue? If so, would they knowingly implement a change which would, for example, decrease their quarterly earnings 25%?

Perhaps as a private company, they could have. But not as custodians of the company for their shareholders. I imagine their shareholders want to maximize their earnings. I know I do!

 

cleanup

10+ Year Member



 
Msg#: 5119 posted 9:06 am on Feb 7, 2005 (gmt 0)

Good point.
They may even stick with a bad update (poor SERPS) if the revenue was found to be higher?

Macro

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 5119 posted 9:35 am on Feb 7, 2005 (gmt 0)

I was thinking of posting this exact same thing. I agree, it's a good point. It's unlikely Google doesn't track earnings relative to algo changes they make. There is no evidence for that, of course, or that they change the algo to benefit earnings. But, I'm sure they keep a very close eye on the relationship.

Hinso

10+ Year Member



 
Msg#: 5119 posted 9:48 am on Feb 7, 2005 (gmt 0)

I wonder if it is now Google policy to tread a fine line between, on the one hand, delivering accurate and relevant SERPs (to maintain their reputation with curtomers) and, on the other hand, producing a proportion of irrelevant results that will result in the most lucrative returns from Adwords.

IanTurner

WebmasterWorld Administrator ianturner us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 5119 posted 9:50 am on Feb 7, 2005 (gmt 0)

There are too many other factors involved, to make it an exact science.

Jalinder

5+ Year Member



 
Msg#: 5119 posted 12:43 pm on Feb 7, 2005 (gmt 0)

So to be successful on the net, you MUST:
1. Have a good themed site
2. Lots of good content, no duplications
3. Have Adsense ads on all your pages.

Remove any point above and you are at risk?

ownerrim

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 5119 posted 12:54 pm on Feb 7, 2005 (gmt 0)


I'll add my own two cents to that:

4. never stop adding quality content
5. never stop seeking inbound links
6. never link out to a site that's questionable

europeforvisitors



 
Msg#: 5119 posted 3:16 pm on Feb 7, 2005 (gmt 0)

Surely Google does the same? In other words, when they implement an updated algorithm, do their Finance guys monitor the impact to Google's Search & Content based revenue? Aren't earnings attributed to their "network of content partners" (i.e. us!) some 50% of their net revenue? If so, would they knowingly implement a change which would, for example, decrease their quarterly earnings 25%?

1) If the financial types tried to tell the Google search engineers how to run search, we'd hear about it.

2) When algorithm changes occur, some AdSense sites go down in the rankings, but others go up. So why would anyone assume that an algorithm change would result in a substantial decline in Google's quarterly earnings? If any change occurred, it would likely be to Google's advantage, because higher-quality search results = higher-quality ad traffic = better click conversions for advertisers = lower "smart pricing" discounts = more revenue for Google.

bnhall

10+ Year Member



 
Msg#: 5119 posted 3:21 pm on Feb 7, 2005 (gmt 0)

efv, let's see if GOOG's 1Q05 trounces their 4Q04. If it doesn't, you may be right. If it does, I may be.

Macro

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 5119 posted 3:26 pm on Feb 7, 2005 (gmt 0)

So why would anyone assume that an algorithm change would result in a substantial decline in Google's quarterly earnings?

It could result in a decline or increase. And, it probably does :). Higher quality search results may actually result in more people clicking organic results than sponsored links. Results of a certain type - preferring a certain type of publisher who's less likely to have Adsense - may result in massively less impressions (and clicks) for the Adsense network. It's all linked, my friend, and a sneeze in the basement can give the financial boys upstairs a nasty cold. I don't believe they have Chinese walls. They don't have need to.

TNJed

10+ Year Member



 
Msg#: 5119 posted 6:24 pm on Feb 7, 2005 (gmt 0)

Doesn't really matter if you think of it this way.

This is the same scenario as in the sports betting world. One half wins and one half loses, but the party that never loses is the bookie because of the "juice." The juice is the 10% loser fee the loser pays in addition to how ever much they lost on their bet. If you bet $100 and lose then you usually pay $110. The winner gets his $100 but where did the $10 juice go? The bookie gets it. That's where they make their money. They adjust the point spread as bets come in to keep both sides as even as possible, but they always keep the juice. For the bookie, the more that lose the better.

With Google SERP updates, some adsense publishers lose and some win, but if there is a greater overall loss in CTR for the entire Adsense network due to a SERP update, Google still wins because of their own "juice." The Google juice is the Adwords network. If CTR goes down across the board because of a SERP update then the CPC must be turned up by the advertisers. This increases bids where they once weren't as high.

This would explain why some wonder why their CPC went south and others say its increased like never before. On the big balance sheet in Mountain View though I'm sure they have a continuous upward trend and in the end, he with the juice wins.

This could be wrong but I couldn't help make the connection. And I'm not saying G does this on purpose, but it's just the nature of supply and demand and one of the natural benefits for being in control of both sides.

europeforvisitors



 
Msg#: 5119 posted 6:54 pm on Feb 7, 2005 (gmt 0)

efv, let's see if GOOG's 1Q05 trounces their 4Q04. If it doesn't, you may be right. If it does, I may be.

"May" being the operative word. :-)

Google reveals both total revenues and payments to partners, so it should be fairly easy to see if the payout has been cut. (Although even then, it may mean only that guaranteed CPM deals or other "signup bonus" arrangements with premium partners have expired. A change in the payout to one publisher or group of publishers wouldn't necessarily mean the same change ws affecting publishers across the board.)

Global Options:
 top home search open messages active posts  
 

Home / Forums Index / Google / Google AdSense
rss feed

All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Home ¦ Free Tools ¦ Terms of Service ¦ Privacy Policy ¦ Report Problem ¦ About ¦ Library ¦ Newsletter
WebmasterWorld is a Developer Shed Community owned by Jim Boykin.
© Webmaster World 1996-2014 all rights reserved