Sunday, July 27, 2008

Droping Paid Search Market In Ads

To go even further, of dropping paid search by Dave. Google has increased the importance of quality which has resulted in a reduction of nearly 40% in the number of ads that appear on a results page. 6 months ago ~6.5 ads appeared per page whereas now that number is closer to 4. This has the potential to significantly help or significantly hinder Google's revenue.

As Richard Stokes points out and I completely concur, this places Google in an environment where one of two things will happen:

  • Advertisers will realize that their clicks are converting much higher, search marketers will spend more time and resources creating more and more relevant ads and landing pages and advertisers will be willing to bid more as the conversions improve. Or...
  • The competition for the top spots will be reduced and so too will the average bid prices.

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