An interesting article by Michael Sainsbury in the Australian IT today entitled “Search Party to Last all Year“, which is congruent with my feelings on the growth of local search. In this article he talks about the large increase in revenues coming from “…banner/display advertising, classifieds and search”.
He goes onto mention that Google “…is just in search right now”. I am of the belief that that’s going to change very shortly.
4 responses so far ↓
Hmmm... // January 15, 2007 at 7:34 pm
Interesting - not sure however how they will estimate the right amounts to charge per thousand impressions. Similar to CPC - there could be lots and lots of empty impressions just as there are lots of fake clicks.
I had a simlar problem with my http://www.parcusgroup.com adds.
Until some relevant revenue share model is in place this will not be ideal.
Meg // January 15, 2007 at 8:05 pm
Hi “Hmmm”, thanks for your input.
You raise some valid points. According to John Chow “…every display network members negotiates a flat CPM rate with Google. The contracts are one year long and publishers have to guarantee Google that they will provide a minimum amount of ad inventory each month”.
This is something I don’t understand about CPM, aren’t a thousand eyeballs (well two thousand, so to speak
) equal. Sure some might be more relevant and some suit a demographic better, but why should you pay more for “site x” than “site y”? So I’m not sure how one would go about valuing the precise rate for their site.
The other downside is being locked in for a year. As “Tony” points out in the comments “Isn’t that ‘forever’ in Internet time?”.
As to your point about “empty impressions”, I think they will be relatively selective with their websites - more so than AdSense, and regarding revenue sharing, according to John Chow “…they are much more open (about revenue sharing) with the display network”.
Peter Bojanac // January 25, 2007 at 5:24 am
We are Australia’s leading performance network and we have hear none of Googles intentions. However Viva9 will make an announcement at Ad-tech Sydney that will place a kink in this assumption.
Stay tuned!!
Meg // January 25, 2007 at 12:40 pm
Hi Peter
I suppose Google don’t always advertise new products in the “testing phase” - it may still be a long way off.
I look forward to hearing about the announcement - it sounds exciting!
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