What impact will the recently launched individual content bidding for AdWords advertisers by Google have on publishers revenue?
Well there's two ways to look at it. One pessimistic, one optimistic.
First, the pessimistic view which basically sees a massive devaluing of content displayed ads. If advertisers across the board lower their bids by 25% for content bids then that should be reflected as a direct 25% decline in revenue to publishers. While this would be devastating to some and force others to seek other potential advertising systems for their content sites, I don't see this happening on a global scale.
The optimistic view is that some advertisers who currently have opted campaigns out of content advertising may now jump in that they have more control over the pricing without having to worry about managing separate campaigns. The end effect of this would be more competition for those keywords and could actually drive up some of the currently lower bid keywords. This could show an increase of revenue rather than a decrease.
In the end, from a publishers point of view, I'm a little nervous. From an advertisers point of view though I see the potential in this expanding the base of advertisers who see content as a legitimate advertising outlet that might have been overlook previously.
We'll have to wait and see what happens.
Posted on Thu Nov 24, 2005 at 01:53 AM | Permalink | Email This | Blogroll IOA! |