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Competition is coming - more $$$ for AdSensers

YPN and in the future MSN too...

         

2fast

2:17 am on Aug 4, 2005 (gmt 0)

10+ Year Member



Hi all,

Keep your fingers cross for revenue increase from Adsense. YPN (Yahoo!) is on the way to snatch some of the AdSense publishers.
Google will increase their payout for publishers to keep them in the program without switching to competitor programs.

I estimate this would occur in the following months and as soon as YPN starts including global publishers after the beta testing ends by December 2005.

If/when MSN starts their publisher program like AdSense, again Google will be forced to pay a good portion from AdWords to AdSense publishers to eliminate mass publisher switching to other programs like YPN and MSN.

Due to the completion;
Google will loose some of their profit margin.
AdWords advertisers will have more benefits, competitive prices and packages.
AdSense publishers will see some increase in their revenue.

So if you are not getting enough revenue from AdSense, switch to YPN or other programs and test them when they are available.
When some of you move to other programs, the remaining AdSense publishers will have better CPM, which would result in increase of revenue.

That is what I think. How about you, any thoughts or comments?

Visit Thailand

2:30 am on Aug 4, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I think it is quite an assumption to think that G will increase the share of the pie it gives to publishers.

I am sure many publishers will test the new YPN if they can, but I am not about to replace all my G code for Y's unless there is a substantial difference.

Ideally it would be great to have both on each page to get the highest paying ads from both, but as of yet that is not allowed.

OptiRex

2:34 am on Aug 4, 2005 (gmt 0)



That is what I think. How about you, any thoughts or comments?

You're obviously the viral sales guy for "Whichever new advertising network!"

Show me any facts before you start guesstimating...it's all been discussed before...check the threads.

hunderdown

2:38 am on Aug 4, 2005 (gmt 0)



I could argue just as reasonably that it will make no net difference, as the advertisers and publishers leaving will balance out.....

Sootah

2:42 am on Aug 4, 2005 (gmt 0)

10+ Year Member



The AdWords advertisers aren't going anywhere. There's no reason to. You can just as easily run both a Google and a Yahoo! campaign at the same time as you can run just one. The only thing this will affect is the publishers, as the programs will be mutually exclusive.

Unless Yahoo!'s earnings are pretty substancially more than Googles then I don't see any real reason to switch.

I'll be getting a Yahoo! account when I can though, because it'll be nice not to have all my eggs in one basket.

2fast

2:52 am on Aug 4, 2005 (gmt 0)

10+ Year Member



Hi "Visit Thailand"

I already visited Bangkok this June. That was my 2nd time to Thailand.
Nice place and tasty food! I will definitely visit Thailand again.

Thanks for your comments by the way.
I think Y and G, none of the parties will agree to have both ads in the same page.
Advertiser will tend to advertise in both advertising programs so there will be duplicate ads in the same page.

"Sootah",
Yes I agree, it is gnot good to have all the eggs in one basket".

2fast

2:53 am on Aug 4, 2005 (gmt 0)

10+ Year Member



This goes to "OptiRex"
I'm not a sales guy or whatever.
I just wanted to share my views.
I don't think there is a rule here not to discuss the topics discussed already.

There are no solid facts for predictions! ok...sorry for that.

OptiRex

2:59 am on Aug 4, 2005 (gmt 0)



Google will be forced to pay a good portion from AdWords to AdSense publishers to eliminate mass publisher switching to other programs like YPN and MSN

Your naievety knows no business bounds!

Remuneration can only be paid IF the income continues and after all expenses are paid.

Quite simply competition should be the guarantor of lower prices and lower gross profit margins IF the volume of trade can be achieved. If not the business goes bust and then another one comes along and screws up the same.

Many businesses try to justify to their banks/stockholders/etc that a "specified volume" of sales/turnover should make them profitable which then leads them into the "need/have to" sales scenario which then drives their business to sell more to justify their position.

This is when the "Grey suit" mentality arises and the business becomes a "cost-cutting" excercise instead of a quality product supplier.

It happens all over the world and it is going to get worse!

Please, no Harvard/Oxbridge theorists' responses...I'll say one thing..."Wait until it's your money which is financing the bills and see how many risks you are prepared to take!"

bnhall

3:02 am on Aug 4, 2005 (gmt 0)

10+ Year Member



Put it this way - there is more money that's not on the table. I spend 7k upwards a month on PPC and I would gladly spend more if I could find good traffic. I am eagerly awaiting both MSN PPC AND Y!PN. So this is not a zero-sum game.

OptiRex

3:02 am on Aug 4, 2005 (gmt 0)



I don't think there is a rule here not to discuss the topics discussed already.

No problem from me 2fast, the only thing is that you write as though you are making factual statements therefore you are bound to get a lot of comments:-))

2fast

4:09 am on Aug 4, 2005 (gmt 0)

10+ Year Member



You're obviously the viral sales guy for "Whichever new advertising network!"

Your naievety knows no business bounds!

What textbook do you read now...Is that the gMichael Porterh recent one?

Some people in this forum, do not know how to response to a topic.
They tend to discriminate or criticize the person who posted it.
They try to show they are the best in everything. :-) Who is going to give them credits here!
If you people continue doing that, "New Users" wouldn't post anything here.

If you want to criticize the content or the topic, that's fine.

hunderdown

4:27 am on Aug 4, 2005 (gmt 0)



I spend 7k upwards a month on PPC and I would gladly spend more if I could find good traffic.

That may be a crucial factor. Can Yahoo deliver good traffic that AdSense has not been able to deliver?

The problem is that we just don't know. I intend no criticism of anyone in saying this, but unless someone here is privy to insider information, I think we are all just speculating. Which is fine! We speculate a lot about how the AdSense algorithm works. Nice to have something new to speculate about.

Paris

5:00 am on Aug 4, 2005 (gmt 0)

10+ Year Member



Google raise payout rates because of YPN? That's highly unlikely. It's likely to stay pat -- if not lower them in the future.

Think about it. Overture wasn't built to stock YPN inventory the way AdWords has been for a couple of years now. So not only does Yahoo! have limited inventory but it will be a gradual process of getting advertisers to sign off on YPN.

Google may be in a sweet position if YPN and Microsoft's entry produce a lot less than AdSense because then Google will have publishers just where it wants them -- tied to Google. I think Google is already providing what seems to be a generous piece of the action. If after YPN and Mr. Softy play their cards they wind up being no better than Kanoodle it'll be Google making all the rules. At least now there's the (hope) that one will trump Google with higher payouts. Jenstar's blog indicates that YPN exceeded expectations but that's now while the inventory is still brimming.

shortbus1662

5:05 am on Aug 4, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I doubt they will raise it.

I have no idea, but here would be two theories for them NOT raising it.

One, suddenly, there are more opportunities for exposure so advertiserrs break up their budgets between the three companies. This means less volume for google, meaning less revenue, meaning NOT higher payouts.

Two, because google does not publicly disclose their share %, they can decrease it at any time if they need to, in order to increase the bottom line. Shareholders, remember!

Both of those may not have any credit to them at all, but it's just as likely a scenario as them upping the publisher percentage in my opinion.

2fast

5:25 am on Aug 4, 2005 (gmt 0)

10+ Year Member



At least now there's the (hope) that one will trump Google with higher payouts. Jenstar's blog indicates that YPN exceeded expectations but that's now while the inventory is still brimming.

Paris, Thanks for your comments.

If YPN starts to do that what will Google do?
Do you think G will sit back and relax?

I will move more to YPN, if G do nothing. If YPN helps to generate more income for me.

Do you remember when G introduced Gmail with 1000Mb mail box...Y! and MSN started increasing the mail box size...and now Google Gmail is providing unlimited expanding mail boxes...Who got the benefits? (The users)

Similarly, AdSensers will get some kind benefits thanks to the competition of the major players of Internet.

Swebbie

6:18 am on Aug 4, 2005 (gmt 0)

10+ Year Member



Remuneration

That kind of language is completely unnecessary! This is a family forum. <snicker>

2fast

6:33 am on Aug 4, 2005 (gmt 0)

10+ Year Member



One, suddenly, there are more opportunities for exposure so advertiserrs break up their budgets between the three companies. This means less volume for google, meaning less revenue, meaning NOT higher payouts.
Two, because google does not publicly disclose their share %, they can decrease it at any time if they need to, in order to increase the bottom line. Shareholders, remember!

shortbus1662, thanks for the post. Great arguments!

1) Breaking up their budget is a good point.
*But also, there will be advertisers who wish to increase their budget due to the availability of new advertising channels.
*Publishers will move their inventory where they get paid more.

2) Google doesnft disclose the share %
* It doesnft matter; we know how much we get for our total clicks. We can switch to a different program if G doesnft pay much as others do.
* 1000s of new publishers and new sites are joining Ad programs every month. So the Ad space inventory goes high around the world and the price try to go down as well. But similarly advertisers are also increasing. Again publishers try to move to better programs that pay them more.

So the publisher inventory will move from low paying programs to better paying programs.
Whichever the case Google needs to pay the highest payouts among the competition to keep the current publishers in their inventory.

Sootah

6:58 am on Aug 4, 2005 (gmt 0)

10+ Year Member



Some advertisers have limited budjets, sure, but it you've got a good ROI then you really can't spend the money fast enough. Seeing $1000 gone in a day would be horrifying to most people, but if you've got a %200 ROI for that then I'd be looking for as many places to hurdle that money as possible.

As for the publisher side, who knows. What Yahoo! may do is offer higher earnings initally. I don't imagine they'll tell us what % they pay out either. Lure a bunch of publishers onto the program with really good payouts till the Yahoo! program gets strong, then gradually lower payouts to whatever the competition allows for.

lammert

7:01 am on Aug 4, 2005 (gmt 0)

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



I spend 7k upwards a month on PPC and I would gladly spend more if I could find good traffic.

It is all about the type of publishers that YPN gets. When reading through previous AdSense threads, it seems that the publishers banned from AdSense are the ones that look forward most to Yahoo's initiative and will sign up first. Yet we have to see how these sites perform for the advertiser and if YPN can generate really good traffic for the advertisers.

The first months of the YPN will be critical for its survival I think. If the mix of publishers in the YPN network is different from the AdSense mix and results are bad because of this, YPN will get so much bad publicity that it will be hard to attract the other publishers from Adsense's network. This will cause advertisers to abandon the YPN network and bid prices will fall. On the other hand, if they manage to have good payout for the publishers and good conversion rate from the start, AdSense may suffer. Only time can tell us.

Essex_boy

7:56 am on Aug 4, 2005 (gmt 0)

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



Id switch if.

They had a lower payout:

Or you were able to charge teh balance against any future adverts you have running.

Paris

3:21 pm on Aug 4, 2005 (gmt 0)

10+ Year Member



2fast has it right. It doesn't matter what percentage Google is paying out -- it's how it all adds up at the end of the day.

Google DOES publish its payout. You see it in every quarterly report as traffic acquisition costs. This includes AdSense for us little people as well as its larger publishers but it's public information that two-thirds of the AdWords money is redistributed to AdSense publishers.

That said, fractions don't matter. If a site like Miva or Kanoodle had a product that paid out 90% to its publishers it wouldn't be worth the switch if their inventory is full of penny ads.

By the same token, if Yahoo! or Microsoft had the high-priced inventory and paid a higher percentage to publishers than Google it wouldn't matter if the ads weren't as relevant or effective (meaning you would receive more per clicks yet fewer clicks).

So why would Google raise its payout? That would only be the case if Yahoo! provided higher paying ads and more relevant results. I'll believe that, when I see it. Even then, Google would only have so much leeway in raising its payout. Its better option would be to aggressively market its campaign to draw in new AdWords advertisers and improve its targeting.

indias next no1

4:15 pm on Aug 4, 2005 (gmt 0)

10+ Year Member



I don't think publisheres will get a good pie.
From 2nd august, my earnings getting down eventhough the impression and CTR remains same.

petra

6:02 pm on Aug 4, 2005 (gmt 0)

10+ Year Member



Has no one here heard of a duopoly? Its basically a monopoly with two players instead of one, that exactly what will happen...G and Y! will have an unspoken rule to keep publisher's shares of the revenue at an absolute minimum.

Here's my prediction: Payouts will not increase, they will decrease. The only thing that might change this scenario is if MS comes into the equation then maybe, just maybe payout will start to increase again.

ann

9:08 am on Aug 8, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Another bright side to all this....Maybe the scrapers and made for adsense sites will switch first!

Oh happy day, I hope so. :-)

Ann

kartiksh

9:24 am on Aug 8, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



IMO, add more content to earn more! Dont waste time by the time we have Y, M and G it is going to be competitive market having low paying keywords. Even if G or other increase the share to publisher, since the advertiser will pay less to them its going to be lesser or similar income. So I didnt expect much difference in income unless they take another move.

bumpski

9:54 am on Aug 8, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



What I'll need is the Adsense, Yahoo, MSN, super ad rotater and optimizer. Get busy freeware vendors.

This software on a page by page basis will optimize which ad vendor's ad (software) to use for a given page. Or it will simply be an ad rotator financial performance monitor. In this way I won't have to think about how to split up the piece of pie I own, called a website.

This software will wake me up when earnings go up and let me sleep when income drops.

Anyway it seems like in the long run there will be more supply than demand so income will be reduced, it may increase but not at as fast a rate. Everyone in the world will eventually have their own website, and they'll discover Adsense too.

But in the mean time I sure hope earnings increase!

AusDaddy

12:17 pm on Aug 8, 2005 (gmt 0)

10+ Year Member



I think most of you guys are on the wrong track about the benifits of competition to Adsense. Unless the is a war for publishers, I doubt that the money on offer from YPN will be much different to what Google is currently offering.

The big benefit to the publisher will be in the conditions. Right now Google has an enormous amount of power. They pretty much say if you put adds on your page we will pay you some of the money for each click that we think is valid. We won't tell you how big a share. We won't tell you how we decide if a click is valid, nor how many invalid clicks you got. We will pay you in the many we see fit, when we see fit. (This did get better with things like paying in different currencies, and direct deposit recently, but still lacks thinks like debiting adwords expenses directly from adsense account). And, oh by the way if we decide we don't like you at any stage, we can cancel your account and refuse to pay you any outstanding balance.

My guess is the way Yahoo will try tp attrack people is by offering better conditions and being more transparent.

hyperkik

3:32 pm on Aug 8, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



My guess is the way Yahoo will try tp attrack people is by offering better conditions and being more transparent

I would expect that only if Yahoo is also a great deal more selective.