Forum Moderators: martinibuster
Google may have that well prepared for the challenge, but it would still receive a significant impact at least in the first few months.
Google may also release additional controls for publishers and more statistics information to make their system more transparent to the market.
On the other hand, the increased competition in contextual advertising could make it a good year for publishers. Let's hope so :-).
Also, expect a LOT more "I got canned by Adsense" threads this year as Google addresses advertisers ROI being diluted by scrapers and fraud.
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I am tired of seeing sexually orientated ads which while on topic are only on topic to a small percentage of viewers.
The sites are not aimed at any form of sexual persuasion and neither should the ads be.
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Yahoo are smart and powerful too, what would be their strategy to have a greater share cut from Google?
Up to now, Yahoo has been very selective about it's Beta test publishers. When they finally go truly live it will be impossible to be so selective.
The first year for YPN will be a tough one.
I also see both Google and Yahoo implementing a "site by site" approval system so people can't slip in with one quality site and then put the code on other junky sites.
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Yahoo is going to be hammered by the scrapers and scammers that have already been booted by Google.
Bingo. Google could drop the hammer on scrapers with a policy change, knowing they will all go over to YPN and pollute their reputation. It's a little like when Castro let 25,000 refugees go to the USA in the early 80s, turns out most of them were criminals. We've all seen "Scarface."
- "Say hell-oh to my little friend!"
If this is any indication, I won't be too scared for G when YPN opens in wide release. With YPN the hype was so much bigger than the real thing.
Y will then decrease its commissions to less than 20%-30%, while G will be forced to increase it to over 70%-80% just to pay publishers the same amount as Y. Why? Because only Y has a strict auction system based only on the amount paid by the advertisers.
On the long run that means a lot more profits for Y, which will then, but not in 2006 yet, have enough cash to buy G.
G will try to save itself by dropping their funny (to use a polite word) algos in computing AW position and pricing. Will they realize it before it is too late?
Also, expect a LOT more "I got canned by Adsense" threads this year as Google addresses advertisers ROI being diluted by scrapers and fraud.
That already seems to be starting... at least judging from the number of 'boo-hoo's' the last few days.
That would be probably too late to re-act.... :D
Yahoo has the advantage though they are just following in, they have the financial power behind and thus time to act on, they don't need quick dollar neither, but just going to cut a substantial portion of the cake.
So payouts will increase to get ads on valuable web real estate. I think payouts will eventually increase to 80% or higher putting G, Y! and eventually MSN in the same boat as traditional ad agencies.
No one here ever seems to think with an economic mindset. Google is currently a de facto monopoly in the contextual ad space. Some big competitors will erode that very quickly whether or not they offer the same quality as Google. Just look at any monopoly situation that has been disrupted by competition in the past by inferior products. Google may continue to do very well, but not as well. It will also lose a lot of the sway over publishers that it has enjoyed in the past. Even Google can not resist the tide of market forces. I'm sure we'll see all G hands on deck struggling to maintain course in the rough seas of competition now visible on the horizon.
Google has to develop new add-on features and tools to cover their loss, and after all, they have to be more transparent with statistics for the advertisers and publishers to further optimized the business at the customers end.
...and don't forget that Y is staffed with business people, not academics.
And you're suggesting that Google's business departments are staffed with pipe-smoking college professors?