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November 23, 2005

The effect of seperating advertiser’s Adwords bids for Adsense Publishers

by Andrew

This isn’t exactly breaking news, but Google implemented a new option to make it easier for advertisers to bid seperately between search pages and the content network. This news isn’t really revolutionary either. Before, you could bid seperately but it meant setting up two seperate campaigns and opting each out of the other catagory.

JupiterResearch has posted a graph advertisers bid preferences when Adsense first launched. At the time 56% said they would pay less for content ads, while the rest said they would pay the same or less.

The question is, are these answers still relevent? I don’t think they matter. There are so many variables in effect now, including smart pricing, that “opinions” don’t really matter any more — conversion rates do. Of course some advertisers pay little attention to conversion rates. I wish I had some data on this, but I don’t.

Its a wide open question as to what effect this will have on publisher revenue — if there is even any effect at all.

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