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At the same time, if Google doesn't offer a discount, advertisers who run out a search engine inventory will have to go with the Adsense ads, so maybe it makes sense for them to stick by their guns.
Patience is going to be the trick I think. Give this a few years for all the major variables to reveal themselves before they start experimenting.
In other words, vote with my feet by walking away if necessary.
If enough Adwords advertisers feel that way, then eventually there will be fewer Adsense ads, and either publishers will stop running them and find other advertisers, or Google will change the way Adwords/Adsense works. I don't know that a discount is necessary (at least for me) although I will admit it would be nifty.
I wonder if in the beta phase of AdSense they had certain advertisers gauge the results of content vs search results.
Another thing, all new advertisers are automatically included in showing their results in AdSense, and I believe that current accounts were included as well. My AdWords account began showing ads through AdSense without me having to change any settings, but it might have been auto changed when I signed up for AdSense.
I wonder what the percentage of advertisers is that opt-out of AdSense ads appearing, but I would think it is lower than what one might suspect.
Anybody who goes on "gut call" & "feeling" to gauge performance of their internet marketing needs to start doing some ROI tracking, conversion rate analysis, and measuring their website with the tools & services that are currently available. ;)
If I measured my advertising on "feeling" I am 100% certain that I would get the pants beat off me (eventually) by a cold, calculating, and analytical company that knows how to measure their return on success - or failure.
Something interesting was posted by europeforvisitors a few days ago, which basically said that content-based advertising is far out-performing search-based ads.
Actually, he quoted the case history at [adwords.google.com...] which detailed the experience of a single AdWords advertiser. So I wouldn't draw that conclusion, but I suspect there are other advertisers who've had similar experiences.
If you have got the feeling that you AdWords ads being displayed on AdSense are not providing you with an acceptable ROI why not stop them being displayed on partner sites including AdSense. If your competitors are monitoring their ROI they will probably do the same thing.
You can then sign up for another AdWords account where your bid is lower, yet ensure that these ads will be displayed on partner sites. Perhaps you will not get as many ads displayed but you will be able to then measure your ROI and then make a decision based on real figures relevant to your site.
Feel free to shoot me down in flames if I have missed something obvious. It's been a long day.
I've talked to a bunch of advertisers and they seem to feel that Adsense ads don't give the same ROI that regular Adwords do.
feeling is bad, certainty is better.
I am certain that AdSense at content based websites gives mid-term or long-term bigger benefits to advertisers than search results related ads. Why? While visitors of content sites in most cases love these sites, and they trust more ads at these sites, rather than ads at google that are emotionally neutral. Visotors usually don't know about ads, so they may feel that if given ad is at this site they love, it means it must be something good. Such psychological effect!
There is at least one poster in the Adwords forum who blames Adsense for everthing from click fraud to high cpc. It has taken Adwords aqdvertisers to tell him that their problems has nothing to do with Adsense to get him to slow down.
I look for real evidence, not theories or feelings. And remember there are quite a few ad networks, affiliate owners and the such out there that may well find it beneficial to spread rumours and feelings to reduce confidence in Adsense.
Im sure nobody is doing that in this thread, but its something to be careful of as Adsense is threatening many right now.
My motto - when you are given a feeling, ask for a fact, when you are given a fact, ask for a feeling...
Whilst such "spin" may influence the odd webmaster here at WebmasterWorld, in the long run AdSense will work, or not work, on whether the big battalions, the large corporations with large budgets move into context ads, or not.