Google Seeks To Boost Ad Revenue By Boosting Quality

March 31, 2008 – 9:44 am

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Google has been making the bulk of their money from their Google Adsense program, and now the company is forced to recognize signs that the gravy train is slowing down. In an attempt to bolster their results, GOOG plans on making advertisers pay for few, but supposedly “higher quality” clicks.

Google believes, in a nutshell, that advertisers grow wear of paying for leads that don’t convert into sales. It is that belief that has made them tweak their ad server system in a way that advertisers are paying for less overall clicks. Supposedly, it is argued, the remaining clicks they pay for will be more valuable.

Most analysts seem to be taking this news for what it’s worth: very little. Obviously, Google would prefer to charge as much as they could for as many clicks as they can possibly sell. What the new directive has forced Google to do is change such things as the “clickable” area of ads, so that surfers weren’t clicking because of confusion. This has also made the cost per click of Adwords rise. Whether this is actually attracting any new revenue remains to be seen. It seems more like Google is reacting to customer complaints, rather than breaking any new ground.

It is also possible that Google has been seeing a decline in raw clicks, and wants to justify it in a way that doesn’t put their core business in a negative light. Less people are clicking in general, and the Big G wants us all to think it’s completely normal. The next few months will tell the tale for how well the plan works.

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