Paid Search & Google's Future

[anthonycea]

Research shows that paid search is expected to slow in the future.

Local search, something that Google and other SE's are expanding into may not deliver the profits that investors were expecting.

The following article gives insight into these issues and the future potential growth rates of Google and paid advertising on search engines.

http://news.com.com/Paid+search+growth+may+slow/2100-1024_3-5301622.html?tag=html.alert

How will this affect Adsense publishers, will Google continue to cut payouts to webmasters to put more profit on their balance sheet?

[Foxy]

How will this affect Adsense publishers, will Google continue to cut payouts to webmasters to put more profit on their balance sheet?

Of course.

But don't assume that it is a straightforward % cut.

One of the things that is always ignored totally in discussions about Ads is that the "real estate" is limited to one page. That is that there are 10 positions or 10 paid ads on any one page.

So in order to get the greatest return you have three options

1.Increase the cost [but this is determined by the bidder]
2.Decrease the payout [% cut therefore not likely]
3.Decrease the ad space available [which has the effect of increasing the bid price]


:)