Forum Moderators: martinibuster
[internetretailer.com...]
In crowded markets, once your in position 1, with all relevant keywords and want more traffic, what do you do?
Adding less relevant keywords may be much worse then 30% lower ROI. AdSense might be much more effective to increase traffic. Lower ROI, as long as it's still positive is ALWAYS more income, ESPECIALLY if orderig nis automated and doesnT' result in more labour.
People tend to forget that there is still lots of stuff out there waitign to be sold, and lots of cash in peoples pockets waiting to be spend.
SN
If advertisers don't find AdSense to be worth the money, they will opt out. If large numbers drop out, Google may have to revisit its business model and perhaps institute a separate bidding system. However, that does not yet appear to be a problem.
Also, the mere fact that a system may benefit from improvement or refinement does not automaticaly translate into "it will die". There's a lot of middle ground between maintaining the present system "as is" and closing shop.
I agree with that. These "studies" are usually done by people with a vested interest in the status quo. Their web site states:-
"(the company's) established partnerships with the leading search engines, portals, directories, and comparison shopping engines ensures your products and services remain top-of-mind for users on the Internet's most popular search services:"
Looks to me as if they would be reluctant to see clients spending money just on Google Adwords/Adsense. Apart from anything else you would not need their services for "advice" as to where to spend our marketing dollars if you went straight to Google.
As Adwords advertiser as well, I can say that my clicks from Adsense have been pretty comparable to search. My only complaint is that it 'dirties' the click-through stats. I like to run a lot of different ads and see test which perform best, and the click-through stats get muddied by the large number of Adsense impressions served, with all of my ads now showing 0.00% CTR or close. Hopefully Google will soon allow a toggle of some sort for this.
[webmasterworld.com...]
(Although the article has moved from the link in that thread)
Google always has the option of pricing search results and contextual ads at different levels.
I think the current bidding/pricing mechanism is fine, but keywords for Adwords and AdSense should just be handled separately. Then the economics will play out based on supply/demand, ROI, etc. If advertisers for certain keywords decide that it's worth $1.00 per click on Adwords, but only $0.30 per click on AdSense so be it. In some cases the spread might be very small, in some they might be reversed.
they might institute a 50% discount or similar for Adsense clicks
I'll assume you mean if bidding for AdSense and Adwords keywords aren't split, since if they're split there would be no need for discounting.
That sounds good until you consider that on a keyword by keyword basis the discount to achieve the same ROI (assuming that an equivalent ROI is what matters) would vary widely. It's also likely that in some cases no discount would be necessary and in yet other cases advertisters would be willing to pay a premium for AdSense ads. And it follows that a flat 50% discount would give some AdSense keywords a much higher ROI than the same Adwords keyword, possibly resulting in increased bidding for those keywords since the combined ROI would be higher than it is now.
