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adsense and supply and demand..

         

disgust

10:19 pm on May 7, 2004 (gmt 0)

10+ Year Member



I am just wondering..

well, it seems like sites everywhere are signing up with adsense left and right. I see them everywhere. this is such a great deal for sites- and they know that.

do you think advertisers can really keep up with it? is there that much of a demand? are we destined to see PPC's drop dramatically over time?

europeforvisitors

1:46 am on May 8, 2004 (gmt 0)



Overall supply and demand are meaningless. Supply and demand for the specific keywords or keyphrases on your site are what determine your EPC and revenues. If you're one of only ten AdSense publishers with pages about paddleboat cruises in Elbonia, there may be an excess of click inventory for "Elbonia paddleboat cruises" even if the number of AdSense publishers doubles next week. Conversely, if your site is about Mary-Kate and Ashley and there are a zillion Mary-Kate and Ashley sites on the Web (each with an AdSense box), there may be so many publishers splitting the revenue pie that a 25% reduction in the number of M-K. and A. sites might not give you a significant boost in revenues.

creepychris

4:25 am on May 8, 2004 (gmt 0)

10+ Year Member



I do adwords and even when I bid the highest, I just can't get enough traffic for all the variations of the specifics keywords and phrases that I want. There just isn't enough traffic for what I want. I suppose I could choose more general terms but I think the more general terms just wouldn't convert well enough.

Anyways, I was surpised by how limted the amount of traffic was out there for what I was bidding on.

cagey1

5:42 am on May 9, 2004 (gmt 0)

10+ Year Member



I think supply and demand is one of the reasons some sites see poor ad relevancy and lower EPC. Google is shipping as much high priced/high relevancy traffic as it can to those sites with the highest conversion ratios (based on its own conversion data). Sites with lower conversion rates are left with the penny pinchers and the less relevant advertisers.

aravindgp

8:16 am on May 9, 2004 (gmt 0)

10+ Year Member



Google Needs to Build itself for coming onslaught from MSN Search Engine.

Given Microsoft's deep pockets,and if they bundle adsense like program in desktop windows software, google need to cope with it.It's really really good for most of the adsense publishers and Google to have more and more sites signup for adsense since this would keep the advertisers in Google fold for a long time and also ensures that big guys can spend more.

What is the disadvantage is that the small sites may be not be able to use adsense due it's sheer volume of clicks and money to be sent.It would closely resemble contextual behavioural marketing where you need to spend $25,000 a month to atleast start advertising.

It's got to be gigantic network which nobody would be able to attack with one more search algorithm.

If one is hoping to make same kind of money one is making now , then you are assuming nothing changes in the online world, which is by no means true, To earn from adsense overtime it's going to be like otherbusiness, one need to improvise, invest time and energy in building quality authority sites.

It's good for Adsense publishers to have more and more sites signing up,it would be irreversible process, the sheer size of adsense network would just be irreversible processes.Whether one can make money out of it depends on one's time invested, creativity and quality of work, like any other business.

Aravind

europeforvisitors

5:31 pm on May 9, 2004 (gmt 0)



Whether one can make money out of it depends on one's time invested, creativity and quality of work, like any other business.

AdSense income is probably like affiliate income: At a guess, 90% of the participating sites make "hobby money," another 5% or 8% do pretty well, and a very few sites make a lot of money. (I remember signing up for Commission Junction a few years ago and being surprised by how few sales it took to reach 4 out of 5 on the "Network Earnings" graph.)

nyet

5:38 pm on May 9, 2004 (gmt 0)

10+ Year Member



Like any well run business, I am sure Google will tighten the supply to keep prices at a reasonable price. (from their point of view).

This is what Smart Pricing (IMO) aims to do. Reduce the overall earnings of lower quality sites, so the are effectively removed.

No manufacturer wants to 'flood the market' because then prices drop.

Adsense is (taken as a whole, EFV) currently in an oversupply situation and Smart Pricing is going to 'tighten it up".

markus007

6:08 pm on May 9, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Adsense is (taken as a whole, EFV) currently in an oversupply situation and Smart Pricing is going to 'tighten it up".

There are some industries where advertisers will buy every single visitor they can under a certain price, no matter if it costs them millions of $ a month

nyet

6:18 pm on May 9, 2004 (gmt 0)

10+ Year Member



i'd bet they are making 4x
millions of $ a month
!

markus007

6:29 pm on May 9, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



biggest one makes 11 million a month....

BriGuy20

11:47 pm on May 9, 2004 (gmt 0)

10+ Year Member



Quoth the Marcus:
"biggest one makes 11 million a month...."

Do you know which site does that?

markus007

2:24 am on May 10, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



yup.

Just go look up your favorite program, and see if they are publically traded. Then go and take a peak at the quarter reports and you can usually find out where they are getting the revenues from.

expert_21

3:41 am on May 10, 2004 (gmt 0)

10+ Year Member



11 million?!?!?