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  1. #1
    Full Member que007's Avatar
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    Thumbs up The Answer to Adsense
    It seems like Yahoo's contextual ads will most likely allow smaller scale sites like Google Adsense. I read this blog today and I will cross my fingers on this one Especially to be accepted quickly as soon as they launch.

    The Article
    http://google.blognewschannel.com/in...er-to-adsense/

  2. #2
    Newbie ProfessorCAP's Avatar
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    Thanks Que this is indeed good news. Do you promote AdSense?

  3. #3
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    This is bad news for publishers.

    As advertisers have more places to advertise, there will be less demand from any one source, so the prices will drop, so payment to affiliates will drop.

    Good news for advertisers I guess.

    Chet

  4. #4
    Newbie ProfessorCAP's Avatar
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    I was thinking of it as an alternate revenue stream. Chet can you elaborate? Why is it undesirable for affiliate webmasters who wanted to serve the new Yahoo ads at their sites?

  5. #5
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    Advertiser A and Advertiser B both want to bid on "Widgets". Right now, if they are trying to get their message on websites and search, they go to google. They bid against each other and raise the price for that keyword. So instead of .05 a click, the price for that click is .20 - what they can pay and still make a profit.

    Now with yahoo, A sees B already has it sewn up on google at .05, so instead of bidding up the keyword on google, B goes to yahoo and sees the keyword open, bids .05. Now they both get their reach for a cheaper price, but affiliates are now getting a lower payout for the same keyword.

    It is supply and demand, dilution of inventory. Basic econmics. It is better for publishers to have one strong source where people will drive up the bid price on keywords than have too many sources where the bid price drops. We still only get one click, I want advertisers to be paying top dollar for that click.

    Chet

  6. #6
    Newbie ProfessorCAP's Avatar
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    ahhh, ok now I follow your logic. Thanks for the explanation.

    Do you think the impact will be felt on competitive terms? I can understand how this would apply with narrow search terms or extremely small niches, but what about larger terms. IE credit cards, pay day loans, debt consolidation and the likes?

  7. #7
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    Quote Originally Posted by chetf
    Now with yahoo, A sees B already has it sewn up on google at .05, so instead of bidding up the keyword on google, B goes to yahoo and sees the keyword open, bids .05. Now they both get their reach for a cheaper price, but affiliates are now getting a lower payout for the same keyword.
    In the short term, I agree, click prices will probably drop. But we all know what has happened to the average PPC on AdWords & Overture over the past few years. up, up, up..

    There's still a flood of new advertisiers that are yet to get on the PPC wagon. In the long run, this will be good for most publishers.

    Ross

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