Google ad revenues were not as big as analysts had expected this quarter.
Google did that on purpose They decided to REDUCE their advertising coverage - i.e. show their ads on FEWER pages than they could have. Here's from an intriguing report on their earnings:
"Some of the softness in Google’s advertising revenue, moreover, was self-inflicted. Jonathan Rosenberg, Google’s senior vice president for product management, said that Google had chosen to reduce its advertising coverage — the percentage of Web pages on which it displays advertising — to an all-time low.
That’s a puzzling decision on the surface. Virtually any other company facing slow economic times would be interested in increasing the places in which it could sell ads. It certainly wouldn’t take steps to reduce them.
But Mr. Rosenberg said that Google has no plans to increase its coverage because of its efforts to improve what it calls “ad quality” — the idea that Google should only show ads that users actually like. Mr. Rosenberg said that the company’s co-founder, Larry Page, would like to see even fewer ads.
“Larry often says we would be better off if we showed one ad — the perfect ad,” said Mr. Rosenberg. Mr. Page was not on the conference call to speak for himself.
Where are they looking to increase their income? Yes, but not by MORE ads, no.
Google developed technology that helped increase its revenue from advertising (largely by finding ads that are more interesting to users).
More interesting ads work better for everyone.
Users click more readily, and advertisers are happy to pay because they're getting results and customers. Net result: FEWER but more interesting ads. Wahoo!!!
Next trick: What is an interesting ad?
Hint: the less hype, the better. No one but the most naive people believe those anymore. Mostly wasted clicks followed by your wasted time or wasted samples shipped to people who won't pick up the phone when you call to follow up.
Ads with big and easy income promises are not interesting to folks who are looking for something to throw themselves into.
So what might an interesting ad look like? Samples anyone?
by Kim Klaver
Google did that on purpose They decided to REDUCE their advertising coverage - i.e. show their ads on FEWER pages than they could have. Here's from an intriguing report on their earnings:
"Some of the softness in Google’s advertising revenue, moreover, was self-inflicted. Jonathan Rosenberg, Google’s senior vice president for product management, said that Google had chosen to reduce its advertising coverage — the percentage of Web pages on which it displays advertising — to an all-time low.
That’s a puzzling decision on the surface. Virtually any other company facing slow economic times would be interested in increasing the places in which it could sell ads. It certainly wouldn’t take steps to reduce them.
But Mr. Rosenberg said that Google has no plans to increase its coverage because of its efforts to improve what it calls “ad quality” — the idea that Google should only show ads that users actually like. Mr. Rosenberg said that the company’s co-founder, Larry Page, would like to see even fewer ads.
“Larry often says we would be better off if we showed one ad — the perfect ad,” said Mr. Rosenberg. Mr. Page was not on the conference call to speak for himself.
Where are they looking to increase their income? Yes, but not by MORE ads, no.
Google developed technology that helped increase its revenue from advertising (largely by finding ads that are more interesting to users).
More interesting ads work better for everyone.
Users click more readily, and advertisers are happy to pay because they're getting results and customers. Net result: FEWER but more interesting ads. Wahoo!!!
Next trick: What is an interesting ad?
Hint: the less hype, the better. No one but the most naive people believe those anymore. Mostly wasted clicks followed by your wasted time or wasted samples shipped to people who won't pick up the phone when you call to follow up.
Ads with big and easy income promises are not interesting to folks who are looking for something to throw themselves into.
So what might an interesting ad look like? Samples anyone?
by Kim Klaver
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