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Anyone else seeing a lower CTR?

are people getting bored with AdSense

         

annej

7:06 am on Dec 9, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I finally gave my adsense stats a careful look and it appears to me the reason I'm not doing as well is that people simply aren't clicking on the ads as often . The traffic is still there but not as many clicks.

Is this just me or is anyone else noticing this?

europeforvisitors

9:09 pm on Dec 11, 2007 (gmt 0)



OK, but what do you think about the study and the fact that online users are NOT impulse/"moment of decision" buyers?

They aren't? Are you saying that my affiliate earnings are illusory? :-)

OnlyToday

9:13 pm on Dec 11, 2007 (gmt 0)

10+ Year Member



...would like to be in Google's shoes then. But I wouldn't like to be one of Adsense publishers.

There are issues to be dealt with as a publisher certainly, but the viability of contextual advertising is not one of them.

If you think AdSense publishers have a poor future, tell us why! Because it is definitely not a problem with contextual advertising itself.

edited for clarity

[edited by: OnlyToday at 9:16 pm (utc) on Dec. 11, 2007]

menial

9:46 pm on Dec 11, 2007 (gmt 0)

10+ Year Member



If you think AdSense publishers have a poor future, tell us why! Because it is definitely not a problem with contextual advertising itself.

I think it is the problem with contextual advertising itself. It has too much limits and works/worked well only with very inexperienced Internet users. The problem is that there are less and less such users online so the idea of contextual ads has no chances to grow.

Atomic

10:04 pm on Dec 11, 2007 (gmt 0)

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I think it is the problem with contextual advertising itself. It has too much limits and works/worked well only with very inexperienced Internet users. The problem is that there are less and less such users online so the idea of contextual ads has no chances to grow.

And yet AdSense continues to bring in more money every quarter.

menial

10:13 pm on Dec 11, 2007 (gmt 0)

10+ Year Member



They aren't? Are you saying that my affiliate earnings are illusory? :-)

You amuse me sometimes. When I or other poster make a point based on their personal experience, you demand a hard proof. When provided a hard proof, you ignore it and claim your personal experience is more important.

Make up your mind, it's not that hard...

menial

10:16 pm on Dec 11, 2007 (gmt 0)

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And yet AdSense continues to bring in more money every quarter.

Do you suggest an average publisher made more money in 2007 versus 2003-2006? I don't think so.

OnlyToday

10:23 pm on Dec 11, 2007 (gmt 0)

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Do you suggest an average publisher made more money in 2007 versus 2003-2006? I don't think so.

But that has nothing to do with the effectiveness of contextual ads. With contextual ads Google not only makes record profits but spends obscene amounts on new hires, equipment, companies and other acquisitions.

If you continue to pose contradictory arguments in the same thread you will injure your brain. You've already damaged your credibilty.

Atomic

10:38 pm on Dec 11, 2007 (gmt 0)

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And yet AdSense continues to bring in more money every quarter.

Do you suggest an average publisher made more money in 2007 versus 2003-2006? I don't think so.


No, I don't suggest that. How would you or I have any idea. Yet, what I said is true.

spiritualseo

10:46 pm on Dec 11, 2007 (gmt 0)

10+ Year Member



I completely agree with all points made by menial.. Kudos man for speaking the truth.

menial

10:49 pm on Dec 11, 2007 (gmt 0)

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But that has nothing to do with the effectiveness of contextual ads. With contextual ads Google not only makes record profits but spends obscene amounts on new hires, equipment, companies and other acquisitions.

You still about Google records profits (do you mean in the US dollar or other currencies?).. The record profits are only because of Google global operations and market positioning. The record spendings of the US advertisers on contextual ads 2-4 years ago are now the record spendings of advertisers from the other countries (where Adsense become popular and heavily promoted after its presence on the US market). These markets will be heavily affected in a year/couple of years as well while - at the same time - the US market revenue will steadily drop. So the overall effect of the end of the contextual ads era will be seen in a year/a couple of years at the latest.

OnlyToday

11:00 pm on Dec 11, 2007 (gmt 0)

10+ Year Member



So the overall effect of the end of the contextual ads era will be seen in a year/a couple of years at the latest.

Granted the concept evolves as the public's awareness of it increases but Google is not standing still either.

I think your analysis of contextual ad growth and your conjecture about the demise of contextual ads is absurd, but like all predictions only time will tell.

annej

11:06 pm on Dec 11, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Contextual ads are no different than ads for camping equipment in a hunting magazine or yarn in a knitting magazine. The advertising money is well spent if it goes directly to the consumers who would be most interested in the product.

The problem with AdSense is that Google has allowed a lot MFAs to carry the ads. Advertisers aren't given the option to choose between a quality magazine and a free paper that sits just inside the grocery store door and is nothing but ads.

I think if a program was started where the advertiser paid depending on the quality of the location where the ads will be shown the program would be more viable. Advertisers want to know the quality of the sites where the ads will be displayed and visitors need to be able to trust that when they click on the ad there will be a actual product and not a phony survey or a page with more ads.

menial

11:09 pm on Dec 11, 2007 (gmt 0)

10+ Year Member



I think your analysis of contextual ad growth and your conjecture about the demise of contextual ads is absurd, but like all predictions only time will tell.

Hey, I'm not happy about it either (in fact at the beginning Adsense was a great way to monetarize a website, with minimum effort). However, I don't see anything that could change a steady drop in Adsense earnings (and that will affect both Google and the publishers).

Scurramunga

11:11 pm on Dec 11, 2007 (gmt 0)

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I think if a program was started where the advertiser paid depending on the quality of the location where the ads will be shown the program would be more viable

Wasn't this the intended purpose of smartpricing?

security56

11:15 pm on Dec 11, 2007 (gmt 0)

10+ Year Member



menial man you right on bringing up "the study and the fact that online users are NOT impulse/"moment of decision" I know for my self I usually search and item before I buy it, I don't buy the from the first offer I get. The other thing which is weird people that usually buy stuff from my site are people that are old users and know well the product we sell through CJ which an affiliate program that for the last weeks have beeing working great :) and no users don't usually buy from an affiliate program out of impulse who ever makes the point must be real illusional themselves lol ;)

OnlyToday

11:48 pm on Dec 11, 2007 (gmt 0)

10+ Year Member



I don't see anything that could change a steady drop in Adsense earnings (and that will affect both Google and the publishers).

Maybe employing an army of the brightest engineers and other geniuses in silicon valley and now all over the world could. I wouldn't underestimate Google. And I still don't believe that the effectiveness of contextual advertising is eroding. I think your premise is flawed. There is a constant supply of new advertisers arriving from other, less accountable media.

[edited by: OnlyToday at 11:50 pm (utc) on Dec. 11, 2007]

europeforvisitors

11:53 pm on Dec 11, 2007 (gmt 0)



I think it is the problem with contextual advertising itself. It has too much limits and works/worked well only with very inexperienced Internet users.

As anyone who's worked in the advertising business can tell you, keyword targeting is only part of the puzzle. Audience is just as important. Put a dealer ad for the Widgetco WC-1 digital SLR in front of a photography enthusiast who's reading a review of that camera, and there's a good chance that a click will convert. Put that same ad in front of a NEW YORK DAILY NEWS reader or someone who landed on a scraper site, and the click probably won't convert.

The biggest problem faced by many AdSense publishers is that they aren't reaching motivated audiences. Their readers or users aren't looking for ways to spend money. If the AdSense publisher has a site that exists mainly as an ad platform, the problem is even worse, because users are likely to have clicked through from a SERP (where they ignored the AdWords ads) and the only value added by the AdSense site is to provide another opportunity for users to click. What's more, if users do click, they're unlikely to convert for the advertiser because they were just looking for information and haven't been brought to the "moment of decision" by what they've been reading (as they might have been on the aforementioned camera-review site).

Fact is, contextual advertising does work. If it didn't work, advertisers (who can track ROI) wouldn't be using it. That doesn't mean contextual advertising always works from a publisher's perspective. If you're just slapping ads on a forum or a page of product listings or a directory site, you're going to earn less and less as Google and its advertisers get better at determining the actual net value of clicks from a given audience.

menial

1:03 am on Dec 12, 2007 (gmt 0)

10+ Year Member



As anyone who's worked in the advertising business can tell you, keyword targeting is only part of the puzzle. Audience is just as important.

For sure audience is very important. But it seems it should be Google's job to match the ads to the audience of your website. At least this is what I gather from the Adsense welcome page:

"AdSense for content automatically crawls the content of your pages and delivers ads (you can choose both text or image ads) that are relevant to your audience and your site content's ads so well-matched, in fact, that your readers will actually find them useful."

Atomic

2:15 am on Dec 12, 2007 (gmt 0)

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



"AdSense for content automatically crawls the content of your pages and delivers ads (you can choose both text or image ads) that are relevant to your audience and your site content's ads so well-matched, in fact, that your readers will actually find them useful."

Looking good on my sites. I'll have to give Google thumbs up for this.

tim222

2:32 am on Dec 12, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Do you suggest an average publisher made more money in 2007 versus 2003-2006? I don't think so.

That's not a meaningful question, unless the increase in publishers matches the increase in advertising dollars. For example, if there are 10 time more publishers now than in 2003, but only double the advertising dollars, then of course the "average" publisher is going to make less.

After reading all your comments I think what happened is that your revenue has gone down, so you assume that's true for everyone else. but that's not the case.

Do a search for "IAB Internet Advertising Revenue Report" The most recent report title is: "Internet Advertising Revenues Continue to Soar, Reach Nearly $10 Billion in First Half of '07"

europeforvisitors

2:34 am on Dec 12, 2007 (gmt 0)



But it seems it should be Google's job to match the ads to the audience of your website.

Trouble is, simply matching ads to the audience isn't enough, because not all audiences are good commercial prospects. For example, if you have a freebies site, your audience won't generate as much revenue as the audience of a site for wealthy widget collectors.

martinibuster

2:39 am on Dec 12, 2007 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



OK, but what do you think about the study and the fact that online users are NOT impulse/"moment of decision" buyers?

menial, I think that study lacks authority. It was done nearly three years ago by scanalert, the HackerSafe people. The intent is to make merchants feel they need a trust logo to speed up the purchase cycle.

Regardless, everyone knows there are segments to the purchasing cycle, and ways to zero in on consumers on the buying part of it.

Can we pretty please get back to the topic of this discussion? :)

Hey Anne, could this have anything at all, even a little, to do with their being less areas to click on an AdSense ad?
[adsense.blogspot.com...]

annej

5:44 am on Dec 12, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Yes, I think the new link set up with the ads may have made a small difference. I don't know that it would make as much difference as I'm seeing.

ftwb05

10:36 am on Dec 12, 2007 (gmt 0)

10+ Year Member



I think you have to understand which keywords are driving visitors to your particular pages.

Although I don't use channels to track individual adsense ads on specific pages, I do use tracking on my affiliate text links, (and analytics to see which keywords drive traffic to particular pages) and my best converters are always the pages that attract the most visitors with phrases like "widget x review" or "widget x vs widget y".

In my case the success of these affiliate links could mean that my adsense ctr is declining (affiliate revenue way up - but it is xmas) - But I'm sure these pages must be good converters for my adsense advertisers too, if their landing pages are well optimised.

As efv says, as adwords advertisers become more savvy with their targeting, and they are given the tools to do so, I think the better converting sites will continue to make money whereas the others will see a steep drop off in revenue.

The caveat to all this is the way that the number of adsense publishers is increasing faster that the number of adwords users, so the "money pot" is being spread more thinly, even amongst good converting websites.

Not sure if that make sense actually. Off to write more (targetted) content.

spiritualseo

8:43 pm on Dec 12, 2007 (gmt 0)

10+ Year Member



The only reasons I attribute to a lower click rate are:

1.) Bad Advertisers:

Bad quality of ads cause of scrapper sites, MFA sites, arbitrage sites, sites with spyware that advertise through google adwords

2.) Familiarity with the Ads

Almost everyone now a days knows what adsense ads look like. Especially after Google went ahead and allowed ads to be displayed on blogspot blogs.

As a person familiar with adsense and the crappy ads they provide, I will certainly refrain from clicking them.

Do you click adsense ads on other websites? Most probably not. Why? Cause you are familiar with adsense ads and the quality of sites you are likely to get when you click.

You are better off doing a search on google and clicking on the organic listings than clicking on a crappy adsense ad.

Only way google could avert the situation is by bringing some freshness to the ads.

- May be remove 'ads by google' mark

- Remove the current standard ad style of displaying a link, followed by text, followed by website url. Come on guys, how long are you planning to follow this same old boring ad style?

- Give more freedom to the publishers

3.) Sites hosted on free servers displaying ads

Most of the arbitrage sites are free blogspot blogs. And these are the real cause of the problem.

Google should consider reversing its decision to allow blogspot blogs and other freely hosted websites to display ads.

If changes are not done quickly, then in the near future, we would experience almost negligible clicks on the ads when almost everyone knows what adsense is and the crappy misleading ads it displays.

greatstart

9:03 pm on Dec 12, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



- May be remove 'ads by google' mark

If they did that, then the CTR would skyrocket, but cause too many invalid clicks.

europeforvisitors

9:18 pm on Dec 12, 2007 (gmt 0)



I don't mind a lower average CTR if it's accompanied by a higher average EPC, which suggests that the clicks are worth more to advertisers. That's what I'm seeing lately, and I'm hoping that it suggests a positive long-term trend.

greatstart

3:58 am on Dec 13, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Same here. I'd rather have a lower CTR and have a higher eCPM. An example of this would be:

Going from 10,000 impressions, 1000 clicks (CTR = 10%) at .05 per click = $50.00 per day.

To having 10,000 impressions, 600 clicks (CTR = 6%) at .10 per click = $60.00 per day.

adamxcl

6:50 am on Dec 13, 2007 (gmt 0)

10+ Year Member



my ctr is up by a few percentage points and EPC is nearly double that of last December. I nice boost to my normally worst month of the year. Still the worst, but Adsense revenue is more than double last December. Ads have been surprisingly relevant too.

I wish all this was happening during my higher traffic times.

shorebreak

5:52 am on Dec 19, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



My SEM alma mater released an interesting study today on AdSense CTR and CPC since Google changed the clickable area on AdSense mid-November:

[blog.efrontier.com...]

Across 70 advertisers spending on AdSense, CTR went down 12% but CPC went up 13%. Interesting data, so thought I would share.

-Shorebreak

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