Forum Moderators: martinibuster
For example, a click on an ad for digital cameras on a web page about photography tips may be worth less than a click on the same ad appearing next to a review of digital cameras.
[edited by: markus007 at 8:08 pm (utc) on April 1, 2004]
The only way that Google can determine ROI will be by looking at the values placed on the keywords and content that triggered the ad. While I do think that they have access to conversion data, I very much doubt that they have access to conversion data for all industries.
I think that the CPC that an advertiser can pay for an ad in the contextual side of adwords has a ceiling {determined by the amount that the same ad can be charged in a SERP adword ad} and can only be diminished by the combinations of words and concepts that triggered the ad in the publishers page.
I respectfully submit that Google does not know what the ROI is. I will also state that a lot of advertisers do not know what their ROI is and some are running their campaigns with a negative one.
Only time will tell <- If we had signatures, I would have added this to mine :)
My understanding is that the cost of a click for an advertiser can at best be what it was before. Or adjusted down.
That's true only if you're talking about one moment in time (now), because PPC rates are fluid, not fixed.
Upward adjustments will come in the form of higher bids. If advertisers know that $1 or $5 is only a maximum for quality leads, and that their adverage rate per click will be lower than that, they can justify higher bids.
IMHO, Google's new variable-pricing scheme is a practical and necessary alternative to the "one bid fits all" approach that was used before. It frees advertisers to pay for value received, which will mean higher payments for some clicks and lower payments for others. Some publishers will benefit, others will suffer, and others won't feel much impact either way.
Make no mistake: Variable pricing wasn't introduced merely as a discounting scheme. Google is obviously hoping that, by tying click price to click value, the net effect will be to make contextual text ads more appealing to advertisers who are willing to pay high rates for quality leads (just as they do in traditional media).
Upward adjustments will come in the form of higher bids.
We could also argue about the necessity of introducing the new pricing scheme. I guess that would be a judgment call, that nobody in this board has the data to support.
Sorry if I did a faux pas
woop-auto blank out.. guess its not allowed. sorry guys, search your webmaster news channels for more info
This means no more large coffee for me, and definetily no more supersizing the value meal.
Upward adjustments will come in the form of higher bids.Supposedly :)
The market will determine what clicks are worth, but it's likely that maximum bids will climb higher under the new system than they would have done under the old one. (In the short run, however, EPCs and revenues may be depressed in many cases, because it will take a while for the market to respond.)
We could also argue about the necessity of introducing the new pricing scheme. I guess that would be a judgment call, that nobody in this board has the data to support.
No, but I'll bet Google has that data--and that such data was studied exhaustively before the new pricing scheme was announced.
CTR: 25% below March
EPC: 35% below March
CPM: 51% below March
Google records high five figure impressions per day (Google is on about 66% of my site's pages), so this is a statisticly valid sample.
I am getting more and more completely irrelevant ads. For example, if my site was about Apples, it would be giving me ads about raising chickens.
Thanks to them ignoring meta tags, the only way I can get Google to make any sense of my pages (a collection of short fiction and poetry), is to add tons of useless content to the page. For reasons of design and usability, I don't want to do this.
I've tried to get better placement through directly targeting the site through DMOZ. Google doesn't give a rat's fart.
Google AdSense paid Ok, better than most other click though, and their ad format wasn't atrocious, design wise. But their "Targeted Ads" were never all that targeted, except on key nav pages. You should see some of the crap their "intelligent placement" comes up with on a page who's primary content is a short story.
And looking at the site today, it got even worse.
Screw 'em. I'm going to make every title on every page read like:
<title> Review Fiction Review Poetry Review (insert title of work here, with the word "review" between every word) Review books Review Literature Review Steven King Review Michael Crichton Review Amazon Books Review.... etc etc </title>
