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Are you ready for declining Adsense income when Yahoo/Msn come in?

what to do?

         

born2run

7:47 pm on Jul 14, 2005 (gmt 0)

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When Yahoo and MSN launch their programs it is obvious that advertising money will be split & advertiser's Adsense budget will reduce. What are the steps you are taking to face this scenario?

born2run

elguapo

8:01 pm on Jul 14, 2005 (gmt 0)

10+ Year Member



This assumes that:

a. Yahoo and MSN will indeed launch competing service (it's been 2 years - where are they still?)
b. Yahoo and MSN will target the same types of advertisers and publishers as Adsense (they can simply focus on top-tier advertisers/publishers and forget the small fry)
c. That there will be mass exodus of advertisers away from Google
d. That Google will not make every effort to recruit new advertisers to replace those who left or to increase the spending of their current crop of advertisers

Running a business always entails risk. If you are not thinking of diversifying your income sources, then you may feel the pinch if and when Adsense gets affected by its competitors. But if Adsense is simply one part of your revenue pie, then you can simply increase income from other sources.

vabtz

8:01 pm on Jul 14, 2005 (gmt 0)



Click my ads more often

ogletree

8:03 pm on Jul 14, 2005 (gmt 0)

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Seeing as there are a lot of peeple that only do ov and only do G I don't think there will be any differnce really.

jenkers

8:07 pm on Jul 14, 2005 (gmt 0)

10+ Year Member



sell products for affiliate programs via CPC. If we get some good competition coming in there may be a few months where anyone proficient at directing CPC ads can make an extra killing - get practising.

Tropical Island

8:25 pm on Jul 14, 2005 (gmt 0)

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LOL

There is no way the Yahoo program will affect (or very little) the current AdSense program.

I am an Overture/Yahoo and AdWords advertiser as well as an AdSense publisher. I've been with Over since May 2000 and AdWords since it's inception.

We advertise on AdWords content however I would never advertise on Overture content. From the number of advertisers that are left in our niche they would have an impossible time trying to mount any kind of International program to challenge AdSense.

It just ain't going to happen folks.

janethuggard

8:41 pm on Jul 14, 2005 (gmt 0)

10+ Year Member



If I as an Adwords advertiser and a new program came out, I would move some of my budget there, and try it. But, not a major portion, if Adwords was already converting well. If the new adserver converted well, I would divide my budget between the two, to reach visitors that I might be missing with Adwords.

It would be a mistake for any advertiser to assume he was alread getting the best conversion rate possible, and best ROI, without actually testing it, and finding out for a fact. I see savy business owners, dividing their eggs into both baskets, to test it, initially.

How are we dealing with that probable scenario? We began months ago building our network to include specific pages for specific adservers. We have Adsense on some, Adbrite and Fastclick on some. When Yahoo launches, if approved, we will build some for them, and see what works best, then go from there.

While in the past I have been very harsh on Adbrite, we knew it was long term solution, and it has finally began to pay off. We are glad we stuck it out.

Swebbie

9:26 pm on Jul 14, 2005 (gmt 0)

10+ Year Member



I think other big players getting into the game with similar programs will mean more advertising to get advertisers, and thus, more advertisers in the game. I would be surprised if Adwords took a long-term hit. I suspect in the short-term they might see a marginal reduction from current advertisers testing the Y and MSN waters. But soon there'd be an influx of new blood and a return to the status quo at Google.

However, it's all good for us publishers! Options = more solutions if we lose our AS acct. or start getting lower monthly paychecks.

bobothecat

9:33 pm on Jul 14, 2005 (gmt 0)



Are you ready for declining Adsense income when Yahoo/Msn come in?

I'll worry about it if/when they both actually have a product and can produce. Until then, seems like pie in the sky :)

Not that I'm a huge fan of Google... but being first does have it's warrants.

mike73

11:00 pm on Jul 14, 2005 (gmt 0)

10+ Year Member



I think there will be a mass exodus to Yahoo, but then people will realize the grass isn't greener, and it will swing back and forth until it evens out.

Sierra_Dad

11:14 pm on Jul 14, 2005 (gmt 0)

10+ Year Member



Not worried.

Unlikely to happen within the next 30 days.

My only domain with adsense on it, earning the amazing sum of $30 per month, will be expiring in 30 days with no plans to renew.

As for my newer domains, isn't it a bit too early to worry about that? Shouldn't I be worried about geting actual traffic, building actual content?

6 months from now, if there *is* anything from Yahoo/MSN, that will just give me more choices, not less.

And there are always page templates.

jhood

1:03 am on Jul 15, 2005 (gmt 0)

10+ Year Member



Advertising budgets are somewhat elastic. Advertisers wanting to try out YPN can take money from not only their AdWords budget but also from their print, broadcast, magazine and direct mail budgets. Online advertising is growing; print and broadcast are lagging.

RonS

1:52 am on Jul 15, 2005 (gmt 0)

10+ Year Member



Sierra_Dad,
If you got the stats, I'll buy that site!

(I wonder how many sticky mails he'll get?)

LOL

incrediBILL

3:18 am on Jul 15, 2005 (gmt 0)

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



Another premature prophecy of doom, did you work for a newspaper during the cold war?

Theoretically we should all be glowing in the dark about now and my offspring would have 3 eyes and 12 toes.

Just remember not to calculate your juvenile poultry before the proper process of incubation has fully materialized!

Swebbie

3:38 am on Jul 15, 2005 (gmt 0)

10+ Year Member



(I wonder how many sticky mails he'll get?)

A LOT! I mentioned off the cuff that I had a site making $40/day that I'd sell and I bet I had 30 people from this forum sticky me about buying it.

I guess I should start a bidding war and see what I can get. $20,000 anyone? That's a bargain for this little gem!

Signed,
Glutton for Sticky Punishment (there's a joke in there, but this is a family show)

JamesR3

4:43 am on Jul 15, 2005 (gmt 0)

10+ Year Member



I think vabtz has it right ;)

Seriously though, why is this even a cause for concern? If it turns out that Yahoo is better, use them. But, I doubt that is going to happen for a while, if ever.

Rx Recruiters

5:08 am on Jul 15, 2005 (gmt 0)

10+ Year Member



1)MSN and Yahoo already accept advertisers (as Google did before Adsense through Adwords)

2)Those advertisers that stick with Yahoo and MSN will have to ante up a larger budget, because with "distributed advertising", their budget will be drained quicker due to the distrubution of the ads.

3) Some Adsense publishers will leave Adsense for the Yahoo or MSN distributed advertising network, thus leaving higher paying ads in inventory for the current Adsense publishers to show - thus INCREASING our ability to show higher paying ads.

My take on it anyway.

janethuggard

1:23 pm on Jul 15, 2005 (gmt 0)

10+ Year Member



Big difference between $30 a month and $40 a day.

Paris

2:30 pm on Jul 15, 2005 (gmt 0)

10+ Year Member



RxRecruiters has it right. Microsoft showed LookSmart the door two years ago so it could start its own paid search program and Overture pioneered it. That's why Yahoo! had so many shares of Google to sell and beef up its profits a couple of quarters ago.

There is no advertiser that is going to jump to Overture (okay, it's not called Overture anymore) just because Overture has access to small content sites through an AdSense clone. Overture is going to have to come off the $0.10 minimum bid to match the $0.05 at Google for that (and it won't have much of a choice if it wants to build up the inventory of ads to serve on that front).

I don't see AdSense declining due to that. I see AdSense declining as more advertisers learn to bid smarter.

Sierra_Dad

6:32 pm on Jul 15, 2005 (gmt 0)

10+ Year Member



(I wonder how many sticky mails he'll get?)

No, I am not getting a flood of stickies, but I did sticky RonS.

You probably wouldn't be impressed here. It's not a content site, but an internet store that stopped selling months ago. That's probably the reason for a high clickthrough rate. The small amount of traffic I still get is probably looking for the products that used to sell there, so there in the clicking and buying mood.

But it has been a fun experiment, and gives me some ideas for future sites that are more in my strategic direction.

europeforvisitors

7:52 pm on Jul 15, 2005 (gmt 0)



I don't see AdSense declining due to that. I see AdSense declining as more advertisers learn to bid smarter.

I don't see AdSense bids or earnings declining at all, if by "declining" people mean "declining across the board." More likely, we'll see a wider disparity in bids and/or earnings depending on the topic, type of content, individual site, etc. Site-targeted CPM ads and domain blocking (currently limited) are a step in that direction.

incrediBILL

8:03 pm on Jul 15, 2005 (gmt 0)

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



I don't see AdSense bids or earnings declining at all

Then obviously you've missed the thread with AdWordsAdvisor and others mention lowering bids for CPC to $0.01

[webmasterworld.com...]

alika

8:10 pm on Jul 15, 2005 (gmt 0)

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



I think EPV is referring to the lowering of bids in reference to the entry of MSN and Yahoo -- not due to Google's own internal policy change. The thread you quoted is not in reference to the entry of MSN and Yahoo.

europeforvisitors

8:23 pm on Jul 15, 2005 (gmt 0)



Then obviously you've missed the thread with AdWordsAdvisor and others mention lowering bids for CPC to $0.01

What Alika said. Plus, I stated that I didn't see bids or publisher earnings declining across the board. A minimum bid of $0.01 won't have much effect on publishers who get few minimum-bid ads. For others, it could have a positive effect in some cases (such as more ads and fewer PSAs).

incrediBILL

9:43 pm on Jul 15, 2005 (gmt 0)

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



OK, let me clarify -

Overture used to play the $0.01 CPC games ages ago before they bumped up the lowest bid.

Now we see Google offering the $0.01 CPC as what I think is a direct attempt to thwart others from taking a bigger stake in the lower end CPC business to further lock down the market for Google.

So, I think it's a pre-emptive strike at Y! and MSN without even having a product directly competing with AdSense so indirectly they are already impacting our income.