Drop in Revenue due to images in text ads?

If your unaware Google now permits their larger advertisers such as Ebay, Amazon, and the like to feature their own small image logo next to the title of their text link ads on adwords. I have raised this issue in this thread http://forums.digitalpoint.com/showthread.php?t=16875 aswell. I can see this as having a negative impact on Adsense revenues for sites which display these certain advertisers. Reason: because these larger advertisers are paying less per click, and with the images drawing more attention to the ads they'll attract more clicks. Definately not a good thing. On another topic, I think its largely unfair only certain advertisers get to use this option. I guess money talks. I wonder if Google will allow all advertisers use this new feature.

Thoughts?

 

Is it possible other site advertisers have not submitted their images / favicons?

 

My problem with this is that I specifically selected TEXT ads! I was not notified of a change in the TOS nor of the definition of the word TEXT changing to include images.

Now that the revenue issue has been presented, it's time to write a letter.

 

I thought Ad positions were chosen based on CTR as well as price, so even if the CPC is lower the improved CTR should make up for it.

 

Nice, they improved the traffic for the higher paying advertisers through our sites and made it so we break even.

Nice treatment! If we keep accepting it, they will dig deeper and deeper in our pockets!

 

I thought ad positions were based on max bid and CTR. Ads which generate most revenue will be at the top, so I don't see the problem if an ad improves CTR.

I'd be surprised if Google classes these new ads as image ones, could be wrong obviously, but I just can't see them being categorised as anything but text ads.

 

That's just it, they changed it mid steam and what ever they deem it to be we are stuck with.

They can shut us down and keep our money. When they change the rules or go outside them, what's our recourse?

And to reiterate. If the ad revenue we can make has gone down and we need more clicks to get the same revenue as before, the advertisies got a great deal! NOT US!

They get more traffic and we get less money. We got screwed. PERIOD!

 

That same visitor which could have clicked on a higher placed/cost ad will click on an Ebay or similar ad. Thats lost revenue.

 

I guess we'll see the kind of impact it will have in the next week or so.

 

It is actually possible that that icon might cause someone to click on as ad who wouldn't have clicked on any. Or it may bring their attention to the ad block, in which case they click on a more expensive ad when they wouldn't have clicked on any.

Like Dcristo said, you first have to see if your earnings go down, then go from there.

 

Google (like us) want the maxx per visitor so would rather have a CPC of 5 and a a CTR of 10% than a CPC of 40 and a CTR of 1%. I know what your saying but to me the way Adwords works is it displays the highest paying Ads first (based on CPC and CTR) or am I missing something here.

 

Very true yfs1 - we'll wait and see.

Its a good talking point meanwhile.

 

I’ve noticed this drop as well, but I've also noticed a drop in CTR as GG has started to show a "block" offering to change to "Ads About:" and they list some "related" topics.

It was also brought to discussion here: http://forums.digitalpoint.com/showthread.php?t=16884

The way they are mixing Ad Links within Text Ad Units completely messes up the "integration" of my AdSense, not mentioning that I discarded the use of Ad Links many weeks ago, as I felt that they were making my CTR and CPM drop.

GG should at least give publishers the option to display or not their "experiments" on their sites.

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i don't see what people are so worked up about. if this decreases your earnings, guess what? it also decreases google's earnings. and trust me they don't want that. if this really effected earnings negatively google wouldn't be doing it

 

Not necesarily true. Their aim seems to be to further carter to the big accounts and get them to spend more by offering value added services like an icon. They can make up that "lost revenue" there at the expense of publishers.

I personally don't think we will see a change in revenue anyway but only time will tell.

 

That's a concern here as well - but I also agree with the point that Google wouldn't be expected to try and damage its revenue streams.

 

good point. i hadn't thought of it that way. i agree though that i doubt we'll see any change from this.

 

I have noticed the Ebay ads returning to normal again...

 

We're all idiots. We're in business and we have an agreement that what they make is secret, we have to keep what we make secret too.

How the hell did they pull that one off?

We have agreed to take any pennie they throw our way with no explaintion of what we;re worth. They tell us and we have no clue if it's a good deal or not, we blindly take it.

Am I wrong here? How many mojor corps ya think do business this way?

 

When you have monopoly like Google does they call the shots. In all honesty though, it really doesnt bother me a great deal not knowing how much of a cut their taking. At the end of the day its the bottom line that matters.