One of the reasons why Google is so successful at Adwords, and not so successful at Adsense, is that the context in which advertising is placed is extremely important. When people are looking, they also look at ads and click on them if they seem relevant. If someone is reading an interesting news article, it might be less so.
Newspapers have discovered this long back, and classifieds are the most profitable piece of the newspapers’ business (more than display ads, which require an ad/edit ratio).
Would be interesting to identify other contexts in which advertising can be effective… could be a billion dollar problem.
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Just following the post (Interesting read indeed!) Google has already sued a company for false adclicks, read on…
Google has sued an Internet marketing firm that it says used false advertising clicks to defraud Google’s pay-per-click advertising system. The case against Auctions Expert International is one of the first involving click fraud.
Complete story at:
http://business.newsfactor.com/story.xhtml?story_title=Google-Sues-Over-Click-Fraud&story_id=28609&category=ecommerce
The false click problem would be solved if the revenues are based on leads generated and not on clicks. There can be ways to track whether a click got convertd to a lead. It’s similar to trend where people pay for service or usage (e.g. what MS proposed in softwares) and not for ownership.
yes i agree with you , sanjay. Print classified is fewer now a days and one of the main reason may be computer+ internet being a part of daily routine, gone are the days when people would take time to read each article and things on newspaper. when you need to search for a certain classified one needs to surf through all the pages of print media…but its rather fast using google. Only thing google cannot search is our brain haha, that would be surely a winning technology when one needs to just use google to search our brain and get things faster
Mukund’s problem of dealing with false clicks is true and one of the reasons for Google’s success is that it has a reasonable way of filtering false clicks from genuine ones. This is a key thing in designing for the Internet. There will be leakages and misuse so it will never be 100% perfect but it will be good enough.
I think the area that is dying fast is print classifieds. Rupert Murdoch says that in most markets he has yet to see a person under 30 who looks at print classifieds any more.