New AdWords Feature to Cause AdSense Revenue Drop?

[caspita]

Hi all,

From this post :

[webmasterworld.com...]

Testing is going on in the new AW bidding algo, it will allow in the future to bid even lower now!

So, get ready to get many 0.1 clicks.

CS.

[ember]

On the AdW side, many of our bids are going to have to rise; some may go down. As a result, since I believe many advertisers will find the same situation, I expect revenue on the AdS side to stay about the same.

[moneyraker]

[it will allow in the future to bid even lower now!]

On the other hand, it may even drive the bids higher, since competition for quality keywords will become tighter, now that unoptimized keywords will be eliminated.

[hunderdown]

So, get ready to get many 0.1 clicks.

You mean .01 clicks, don't you? But seriously, this is only going to affect publishers already getting a lot of minimum-value clicks.

And to add to what Ember noted, I saw a number of AdWords advertisers complaining that the minimum bid for their keyword(s) had increased.

This is going to affect some sites positively, some negatively, many not at all....

[Zygoot]

Overall it should benefit the publishers. The more we earn, the more Google earns.

[asp4bunnies]

Interesting - someone in that thread notes that even if you bid .01, you still have to pay the .05 minimum.

So I don't think this will harm Adsense at all.