Forum Moderators: martinibuster
Who are the ads going to be aimed at? I can see that Google would place them on sites that don't perform for advertisers, but I can't see why they would choose to take off ads that pay them and webmasters well, and replace them these 1c ads.
So are they going to do this? If so, how on earth is Google going to increase their earnings by doing it?
In my case, I've managed to increase the earnings Google/I get as a result of helping to target the ads better (booting off the scrapers). I've increased my part of the overall site income by 27%. I assume their part has increased by the same amount or more. When checking the stats I see some clicks that notch my earnings up by between $1.50 and $2.00. ctr and epc are good/high.
Can anyone explain why one earth Google would choose to pull these high earners that clearly work well for advertisers, and replace them with 1c ads? I think they'd be completely bonkers to do this, hence I think they will target sites that don't perform for advertisers and already have been hit hard by smartpricing.
Does anybody know, or is all the talk here speculation?
i have studied this issue quite deeply, and while there is a theoretical possibility for 1c clicks, i suspect that they will be rare. the advertiser will have to have a exhorbitant CTR on her ad for it to qualify for such a low bid.
google is unlikely to do something that will hurt their revenue - since publishers and google are on the same side in this case, i think it will mostly come out in the wash.
until the actual algorithm is rolled out, no one will know for sure... there is even an argument to be made that the new system (which includes more than just 1c clicks) will improve overall revenues for publishers. we will know in a few weeks.
it is not speculation. check out the official google adwords blog, specifically the first few posts. there will be 1 cent clicks, and that is the ADVERTISER cost, so the publisher might make less.
Thanks for the reply. I didn't mean that the possibility of 1c clicks was speculation, what I meant was that there is a lot of speculation as to how it might work in practice.
the advertiser will have to have a exhorbitant CTR on her ad for it to qualify for such a low bid.
That makes sense.
google is unlikely to do something that will hurt their revenue - since publishers and google are on the same side in this case, i think it will mostly come out in the wash.
Exactly. I think a lot of people here think that because it's being introduced, that means that their site will automatically have lots of 1c clicks. As google is in it to make money, I would imagine they would only put up 1c ads where they felt it would be more profitable than regular ads. As you say, that is going to be pretty rare.
One theory did just strike me - maybe they plan to phase out PSA's for 1c ads, and in place of where they would normally put PSA's you will see 1c ads instead? Anyone consider that a possibility? That's a possible way of making money out of dead advertising space, and would be affordable for charitable organisations.
the advertiser will have to have a exhorbitant CTR on her ad for it to qualify for such a low bid.That makes sense.
No it doesn't. Any CTR will do when there's little or no competition on a keyword.
Any CTR will do when there's little or no competition on a keyword.
i dont think this is necessarily true. since the new program is not released, it is not clear what the new algo will be.
from the official adwords blog:
We’re replacing the static USD $0.05 minimum bid for all keywords with a minimum bid that varies based on the quality of your keyword and ad text. High quality keywords (determined by the Quality Score) will have minimum bids as low as $0.01
and "quality score" is defined in another post from the same blog:
The Quality Score is simply a new name for the predicted CTR, which is determined based on the CTR of your keyword, the relevance of your ad text, the historical keyword performance, and other relevancy factors
which means to me that the CTR will have to be there to be eligible for a 1c click.
which means to me that the CTR will have to be there to be eligible for a 1c click
OK, that makes sense. Let's hope Google sets the parameters right. I have a feeling we're going to see some 40-page threads again in the coming weeks.
I also have an “alternate ad” for this banner. While I do see quite a few banners from advertisers, one thing I can guarantee, my image only banner advertising space is not sold out. Most of my pages have significant content but still no banner ads from Adsense. This “experiment” has been running for a week and I’ve gotten some truly intriguing statistical results, but that’s for another post.
I’d estimate not even 50% of my ad inventory for these banners is being sold. At one cent a click I’ll bet the image banner space will fill completely regardless of the topic.
I think Google’s not filling its image banner advertising quota. CPM ads probably aren’t going to do. This, in essence, requires the few advertisers out there to review every site! Google’s big on automation, so this strategy will help fill the image banner ads void automatically.
Heck, at a penny a click, I might throw my sites banner up for some keywords and see who stops by! Wow brand marketing, I’d better get some trademarks (can’t afford it)!
I don’t know about you, my home page is usually my biggest producer, probably because it’s just an index to the rest of the site and has very little actual content. So I may lose visitors but I guess it’s through the Adsense ads. That’s as good a way as any to lose a visitor!
