Google slip-up MUST be intentional

Discussion in 'Google' started by frankcow, Mar 8, 2006.

  1. #1
    frankcow, Mar 8, 2006 IP
  2. furbs

    furbs Peon

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    #2
    A mistake was also made when Google said that "AdSense margins will be squeezed in 2006 and beyond."


    Not sure what to think of that one yet...
     
    furbs, Mar 8, 2006 IP
  3. nsusa

    nsusa Peon

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    #3
    I would assume that means Google will make less per click for itself. If Adsense has more competitors Google needs to give more to publishers.

    Christoph
     
    nsusa, Mar 8, 2006 IP
  4. clancey

    clancey Peon

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    #4
    That was covered in their third quarter statement. Google seems to have been trying to reduce the percentage of revenue it shares with publishers, as reflected in a declining acquisition cost for its advertising revenue from around 40% in the first nine months of 2004 to almost 36% last year.

    The most significant statement was its prediction that the cost of obtaining ad revenue would fluctuate based, in part, on "whether we are able to enter into more AdSense arrangements that provide for lower revenue share obligations or whether increased competition for arrangements with existing and potential Google Network members results in less favorable revenue share arrangements"
     
    clancey, Mar 8, 2006 IP
  5. gford

    gford Peon

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    #5
    "Google published a large document on line that accidentally included speaker's notes. It was eventually discovered by Web surfers. In the notes was a projection that Google's core advertising business would grow 60% to $9.5 billion in 2006, but that profit margins could shrink, The Associated Press reported."

    Full story at http://articles.moneycentral.msn.com/Investing/CNBC/Dispatch/060308markets.aspx

    scroll half-way down for the google part.
     
    gford, Mar 8, 2006 IP
  6. tbarr60

    tbarr60 Notable Member

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    #6
    It might be a message to Adsense publishers: "Stay with us, don't got to YPN or Adcenter." It is interesting to see some of the smartest guys on the web saying "Oopsie-daisy".

    Any company with more than a couple thousand employees has a policy of having all communications funnel through a well rehearsed PR department.
     
    tbarr60, Mar 8, 2006 IP
  7. dsm56

    dsm56 Active Member

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    #7
    Are you guys sure about this?
    When I first read it I got the impression it means less money for adsense publishers... Can't it be interpreted both ways (so really, we havnt found out anything useful)
     
    dsm56, Mar 9, 2006 IP