Google Says Lowering EPC, Until Competition Arrives

Discussion in 'AdSense' started by Surf_Dude, Apr 8, 2005.

  1. Arnie

    Arnie Well-Known Member

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    #21
    Seems like Yahoo is playing a waiting game, as longer they wait as bigger the pressure on G.
     
    Arnie, Apr 9, 2005 IP
  2. vprp

    vprp Peon

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    #22
    Well, I think it's already been publicized that certain partners receive larger payouts from AdSense. I think AOL was the partner in question I read about.

    Does anyone know the timetable on when Yahoo! plans to get their offering out? They would seem like the likeliest challenger to AdSense since they already have Overture.
     
    vprp, Apr 9, 2005 IP
  3. paymentapprovaltooslow

    paymentapprovaltooslow Banned

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    #23

    Yahoo won't be able to take on te' mightly adsense. The reason why is because google was first and they have such a huuge advantage.
     
    paymentapprovaltooslow, Apr 9, 2005 IP
  4. Arnie

    Arnie Well-Known Member

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    #24
    I disagree. Yahoo is well equipped, but its just a bit of a strategic game at the moment.
    If Google has the Monopoly in this business then its against the law. Yahoo knows that very well too. One thing we all know for sure that Yahoo lets overture go down, so that there is no competitor which furthermore could be harmful to Google. Or do you think that Overture made no profits?

    For all of us it would be better if there's a healthy competition.
     
    Arnie, Apr 9, 2005 IP
  5. paymentapprovaltooslow

    paymentapprovaltooslow Banned

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    #25
    Cool username.

    Anyway, with regards to the monopoly why hasn't anyone taken on Ebay? MOnopoly suits tend to be quite rare.

    Overture made profits for yahoo, but overture advertisers are going to be wary banching out into content pages.

    Yahoo branched into auctions..and well thier auctions...suck...badly.

    I dunno time will tell I guess.
     
    paymentapprovaltooslow, Apr 9, 2005 IP
  6. miko67

    miko67 Well-Known Member

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    #26
    Only problem now is:

    With 2 or 3 major players in the field we might not have a monopoly, but we still get an oligopoly.

    This in turn means there is an overwhelming risk that the major players wil silently (and illegally) split the market between them through cartel arrangements securing them artificially high prices and low payments.

    Still, one would think that three players is a hell of a lot better than just one :eek:
     
    miko67, Apr 9, 2005 IP
  7. vprp

    vprp Peon

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    #27
    I see Google and Yahoo! as fierce competitors rather than partners. I think Google has proved that there are huge profits involved with search and contextual ads and Yahoo! would like to take the dominant position from them. So would MSN. Right now, I think Yahoo! is in the best position to challenge AdSense.

    Overture brings in huge profits for Yahoo! and I'm sure they only want more.

    It's not exactly easy to go after a monopoly, either. Look at Microsoft. Contextual ads is still an emerging market and although AdSense has a huge lead, I think Yahoo! or even MSN could get a piece of that pie.
     
    vprp, Apr 9, 2005 IP
  8. fryman

    fryman Kiss my rep

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    #28
    A piece? How many of us are just counting the seconds for this to be released so we can test it out?

    How many threads are created every day about this? People are going crazy and can't wait for Yahoo to jump in the market and let us compare.

    My earnings with Adsense have gone down 50% this month, I don't know what the heck is happening, but it is just terrible, same clicks, maybe even more, but much less $$. I'd sure give Yahoo a good try.
     
    fryman, Apr 9, 2005 IP
  9. Bernard

    Bernard Well-Known Member

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    #29
    Fryman, I agree in spirit with your post, but earnings drops across the board for AdSense members could be attributed to:
    • expanding AdSense network driving total clicks per day for AdWords advertisers too high (which in turn may cause them to lower CPC if they are still getting sufficient traffic)
    • Google dropped the payout percentage
    • Google adjusted (or has a continually adjusting system on) their smart pricing system so that the top performing sites get the best payouts. More sites in network = more competition for best payouts.
    • Advertisers are just naturally driving CPC downwards as the "prestige" for being #1 is largely seen for the red herring it is and ROI is the name of the game
    I'm sure there are other possibilities...
     
    Bernard, Apr 9, 2005 IP
  10. AfterHim.com

    AfterHim.com Peon

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    #30
    Seems pretty self explanatory to me...they want more money for the mothership and less for us.

    From yesterday alone, my average cpc is down about 2/3 and has been going down the last week...

    However, my clicks have been going up up up, so it is keeping my money about even.

    I can't wait for Y! to finish and release their version...I'll be testing it from day one for at least a week or two.
     
    AfterHim.com, Apr 9, 2005 IP
  11. anthonycea

    anthonycea Banned

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    #31
    All buy and sell prices are supply and demand related.

    If there is a need for lumber to build homes the price goes up.

    Google is signing up more publishers everyday so there is more supply and less demand for individual pages that webmasters produce.

    It is really that simple. You have to build a better mousetrap to make money and have the best traffic figures to make it.
     
    anthonycea, Apr 9, 2005 IP
  12. Crusader

    Crusader Peon

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    #32
    I've heard complaints from various people that their adsense revenue have gone down the last couple of months. Guess this puts everything in a new light.
     
    Crusader, Apr 9, 2005 IP
  13. Homer

    Homer Spirit Walker

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    #33

    The rumours you here are true...no doubt about it. If you can believe that my EPC is 50% less, Goolge is still the best paying program on the planet.

    When yahoo or MSN comes out with a like product I suspect EPC will increase.
     
    Homer, Apr 9, 2005 IP
  14. Crusader

    Crusader Peon

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    #34
    I've gathered as much. I'm still a very big Google supporter so it remains to be seen what Yahoo will bring to the table.
     
    Crusader, Apr 9, 2005 IP
  15. T0PS3O

    T0PS3O Feel Good PLC

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    #35
    It could also be part of a physcological game where they squeeze payouts now until the competition arrives. Maybe when Yahoo's Pub Network arrives they'll increase it back again to 80% of what it was so they seem generous. Or they cut certain big spenders a 'deal' where they'll get their high payouts back if they sign a special deal or something...
     
    T0PS3O, Apr 9, 2005 IP
  16. Homer

    Homer Spirit Walker

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    #36
    I subscribe to many Google products..I agree they are #1 and don't see this changing anytime soon.

    My bigger concern is the 'monopoly' they have. Monopolies are illegal. If Google does not have competition...not good. We all remember what happened to BIll Gates a few years ago.

    If this happens to Google guess where that leaves the AdSense publishers? Maybe this is the real reason Yahoo is holding out :confused:
     
    Homer, Apr 9, 2005 IP
  17. Mia

    Mia R.I.P. STEVE JOBS

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    #37
    Monopoly on what? There is no monopoly. To have a monopoly they would have to have a system in place where by you could not possibly use any other service. You can, and many do. There are tons of PPC services out there, Google is not the only one. It is hardly a monopoly. They just seem to have the best and most prolific at the moment.
     
    Mia, Apr 9, 2005 IP
  18. Crusader

    Crusader Peon

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    #38
    Google definitely needs some competition. Not only will it help us publisher earn more (hopefully), but it will also drive some new innovation in the advertising sector.
     
    Crusader, Apr 9, 2005 IP
  19. anthonycea

    anthonycea Banned

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    #39
    anthonycea, Apr 9, 2005 IP
  20. Homer

    Homer Spirit Walker

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    #40
    I hope you're right, Mia. Your point is well taken, but it seems there is NO comparable program out there :confused:
     
    Homer, Apr 9, 2005 IP