mlemos - 2:33 am on Dec 3, 2011 (gmt 0)
I think this can be positive for the publishers in general, but I am afraid this new ads system may have light years to catch up on the maturity of AdSense.
First, AdSense capitalizes on the overwhelming number of advertisers attracted by Google from being already in AdWords.
WordAds has to make a very serious effort to attract a significant number of advertisers, or else it will be hard to present ads that are relevant to each blog content. If the ads are not so relevant, the campaigns do not work so well and advertisers may end up not loosing interest for WordAds.
Second, Google uses a sophisticating bidding system that makes advertisers compete for ad spaces. So competitive niches get the advertisers to pay more and reward more the publishers. Less competitive niches pay less but the publishers still get relevant ads due to the site of AdSense market.
Other than that I do not think it is a good idea for Wordpress people to hand pick blogs that will be accepted in their program. That will severely limit their market.
Another point is that only accepting blogs in Wordpress.com that run on a custom domain, sound like a bait to make more people to buy custom domain premium packages in the hope to be accepted in the WordAds program.
Anyway, I hope this new advertising player will provide good competition to AdSense because some niches in AdSense do not pay so well nowadays because they are too crowded with publishers. If a good number of advertisers move to WordAds, I am sure that those niches will be come less crowded and they start paying better in AdSense.
I also hope that WordAds becomes significant so it acts as a wake-up call for Google to fix their long time issues with AdSense to keep the publishers happy with them.