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CPC sinking

all good things must come to an end

         

mfishy

3:22 am on Jul 15, 2004 (gmt 0)

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For a small portion of our sites we replaced aff links with adsense and saw our earnings increase. In the past week the CPC has gone down to where we have changed all the links back to affiliate programs. Some of the terms the merchants are bidding over $10 for the top spot and we are getting in the range of $.25 now.

Is this widespread?

NeedScripts

3:24 am on Jul 15, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



From what I have heard and seen.... "Yes"

ken_b

3:49 am on Jul 15, 2004 (gmt 0)

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Some of the terms the merchants are bidding over $10 for the top spot and we are getting in the range of $.25 now.

I wonder if this is a two part issue.

1: Smart pricing, courtesy of Google itself.

2: Advertizers bidding on a dual campaign basis. That is one campaign for the serps and a much lower bid campaign for content sites.

ownerrim

3:29 pm on Jul 15, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



judging by recent posts this seems to be a fairly widespread phemonenon. In my area, which is a niche with which I am extremely familiar, I know for a fact that if I had a way to deal directly with the advertisers (who are a static group of about 20 different companies), I 1. could earn substantially more each month
2. eliminate their risk of fraudulent clicks since they would no longer find their ads appearing on trash sites.
3. actually save them money and give them better ROI since they would pay a flat rate for clicks versus having to pay for ccasional high price clicks.

Anyone know of software that can be acquired for this purpose? To setup one's own cpc system and deal direct? I know they exist, but can anyone recommend one?

jomaxx

3:55 pm on Jul 15, 2004 (gmt 0)

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This is where you lose me: You expect the advertisers to stop advertising with Google and switch over to sponsoring some site they've probably never heard of?

alika

3:56 pm on Jul 15, 2004 (gmt 0)

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CTR increased by 10.25% in July compared to the same period last month. So no, CPC is not sinking for us. Our strategy of having a wide variety of subtopics helps us weather the ups and downs of Adsense.

Ownerrim ... check out phpadsnew. It is capable of handling text ads and CPC campaigns. You can have something like a Sponsored Text links section in your site and phpadsnew can manage it on the fly.

ownerrim

4:16 pm on Jul 15, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



in this particular case, I am fairly confident the advertisers would switch. The industry is a fairly small but lucrative one populated by a specific kind of highly educated professional. These people make quite a bit of money. But they do depend on leads. My site happens to be the leader online in providing information to those who stand a good chance of becoming the clients of these "highly educated professionals".

In fact, there's only about 3-10 thousand of these people doing business in the country and they have only just recently realized they could advertise online.

Regarding whether or not they've ever heard of the site, I'd say a large percentage of them have. It's been talked about in forums that cater to them specifically. I've been solicited by a couple of their professional organizations and have had an offer to sell the site (didn't respond because they don't have a clue what the thing is worth longterm. they would just want to buy, turn it into their own lead generating vehicle and effectively destroy any reason for visitors to come to the site--and any reason for other sites to link to it as well)

The neat thing about it is this: many of them have websites. But none of them did their websites and have never heard the phrase SEO. Most of them, despite their advanced degrees, can barely operate a computer or open an email attachment. Think of a biologist or a judge, or an architect. What does that person know about search? Nothing.

I only know about this niche because I've worked in it for years, in different capacities

ownerrim

4:18 pm on Jul 15, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



thanks for the tip alika

europeforvisitors

4:31 pm on Jul 15, 2004 (gmt 0)



For a small portion of our sites we replaced aff links with adsense and saw our earnings increase. In the past week the CPC has gone down to where we have changed all the links back to affiliate programs.

Why not use AdSense and affiliate programs?

ogletree

4:35 pm on Jul 15, 2004 (gmt 0)

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Mine is doing fine. I have done some Aff stuff lately that does much better. Aff is way better than AS if you do it right. Of course we make quite a bit. We are just under 4 figures a day.

Sanenet

4:37 pm on Jul 15, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



The industry is a fairly small but lucrative one populated by a specific kind of highly educated professional. These people make quite a bit of money. But they do depend on leads. [....]In fact, there's only about 3-10 thousand of these people doing business in the country and they have only just recently realized they could advertise online.

There you go then - typical market model of a new advertising model. Small market finds amazing new marketing model, pushes it, initial spiral upwards until prices stick, and then rationalisation of prices.

The drop that you're experiencing is caused by the advertisers realizing that the market is being overpriced and the subsequent market level adjustment, nothing else.

Undead Hunter

5:56 pm on Jul 15, 2004 (gmt 0)

10+ Year Member



Europe:
I'll tell you why not to do both: because the lower paying ads could suck away higher paying traffic, if there's any cross over of content. Even if they're in the same field, someone might choose a lower click rather than a higher one.

I don't know if CPC is going down or stabilizing. Or maybe it has to do with the summertime? I know a ton of people are on vacation right now. 4th of July weekend and the days around it were a wash for us, along things are more or less back to normal now.

Maybe try AdSense again in the Fall?

ownerrim

6:14 pm on Jul 15, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



sanenet, you could very well be right. however, new advertisers in this area are entering the fray on a fairly continuous trickle basis. It seemed to me that these folks wouldn't have scaled back their expectations so soon and would keep the bid prices higher. so...i'm back to conspiracist thoughts again, thinking that smart pricing is simply a way for google to wrangle a little more away from publishers. I still think there's the possibility that going direct to the source might be better. And, if I ever get dropped by adsense, I will have no choice but to put that to the test. Fortunately, since the number of advertisers in this field number 30 at best, it might not be that hard to get on the phone and get some business lined up.

europeforvisitors

6:37 pm on Jul 15, 2004 (gmt 0)



I'll tell you why not to do both: because the lower paying ads could suck away higher paying traffic, if there's any cross over of content. Even if they're in the same field, someone might choose a lower click rather than a higher one.

I've tested both ways (including blocking of certain advertisers), and I haven't noticed any drop in affiliate revenues as a result of using AdSense. On the contrary: My affiliate revenues have increased.

It's worth remembering that, for every person who clicks on an AdSense ad, there are many, many others--usually a large majority--who don't click and are therefore virgin prospects for your affiliate links.

loanuniverse

7:50 pm on Jul 15, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



My EPC has gone down about 25% from May. {Using 7 day rolling averages}. So chalk one more up for dropping EPC.

yoyo8

8:29 pm on Jul 15, 2004 (gmt 0)

10+ Year Member



50% drop since May.

asinah

4:42 am on Jul 16, 2004 (gmt 0)

10+ Year Member



60% increase since May

alika

10:23 am on Jul 16, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Threads like these ALWAYS show that when the boat is sinking the other way, others are getting right back in the water and enjoying the ride.