Archive for the 'online advertising' Category

Google Price Fixing with Ad Quality

October 24, 2007

When you own 50% of any market, especially one that supplies mostly small and medium businesses, you’ve got a great opportunity to take pricing.

Take pricing?  Yep, just raise the minimum CPC on those PPC ads, and you can add millions to the bottom line.  How?  Something Google is calling Ad Quality, and because they are taking pricing, they need a new tool to show people their ads now have poor Ad Quality.

But Google does no evil, they save puppies, and don’t flaunt their private jets or exclusive Federal runways. 

Great, here’s a real life example that can only be explained by Google taking pricing:

* Created a new ad in Adwords for a very specific keyword and landing page
(both requirements for good Ad Quality)

* The keyword ran for a total of zero impressions
(Google must already know the keyword with existing data or it’s an Ad Quality issue)

* Traffic Estimate tool says that Google doesn’t have enough data on the keyword
(Ok, so it has to be an Ad Quality issue since it didn’t have any impressions)

* The brand new Ad Quality (price fixing) tool shows that the Ad Quality is ok
(Now I don’t get it, it’s neither data or Ad Quality, seems like you want me to spend more money without giving an actual reason other than you run the ad network)

The best part about this whole pricing scam is that Google, because they’re not evil, gives you the chance to buy your way out of the problem.  It says, just increase your bid, then your ad quality won’t matter as much.  I finally found a need for Yahoo.


You’ve Made It Big Time

June 9, 2007

Techcrunch reports that the addictive game makers have been collecting online advertising revenues and plan to quit their day jobs and create a startup

Since I tested this game, purely in a viral marketing context, and could never score well evaluate it completely, I was encouraged by the after market enhancement available.  When someone goes to the effort of hacking your flash game, you’ve made it big time.

So the startup is a logical extension… I hope one of them has a marketing strategy.  When the online advertising dollars start to drop, hopefully they have another game that’s just as addictive.  That’s not likely, but there’s always the option to do custom games for organizations, develop a point and click builder for similar games, or even do something silly like charge for access to older games.

You’re Paying Too Much for Online Advertising

May 29, 2007

The blogs, although biased, continue to proclaim the boom of online adversting, and it seems as if Microsoft (aQuantive) and Google (DoubleClick) agree. 

With less selection of inventory, alternative online adversiting forms such as PayPerPost will likely spring up and be successful in the short run.  You’ll also see a large increase for ad management and SEM firms because they work off a percentage of the advertising dollar spent.  Overall, it means you’re going to be paying too much for online advertising if you’re not evaluating click-thru-rates and using alternative ad vehicles.

The best part about the flourishing online advertising industry is that there’s a reason for it, and the worst part is that it’s a short term boom.  Starting at the end of this year, most advertisers will no longer be able to generate the same reach from their ad dollars because of the Presidential campaigns on TV.  These never-had-a-chance politicos will spend millions in TV advertising, moving the demand curve and increasing the price.

The next best choice for the 18-35 demographic is likely online advertising, which essentially means there’s more money chasing the same inventory – demand curve take 2 steps to the right.  So if you think you’re paying a lot for online advertising today, just wait.

However apparently there are still some companies with money to spend, with this recent email (don’t ask me why I got it, don’t ask me why they don’t have a legal disclaimer) about a couple of advertising deals for Kelley Blue Book:

From: Melissa S. Chapman []
Sent: Tuesday, May 29, 2007 1:13 PM
To: Jean Brockmeier; Bill
Subject: FW: HP SOLD! for tomorrow’s flight
Importance: High

HP Spons on it’s way for tomorrow!

Melissa S. Chapman
VP, OEM Segment Product Strategy & Management,
(949) 268-3048
(949) 268-3028 – fax
Kelley Blue Book
The Trusted Resource

From:   Susan Brown 
Sent:   Tuesday, May 29, 2007 4:13 PM
To:     .Ad Inventory; Melissa S. Chapman; Anne Diep
Cc:     Ercy Coronel; Robin Cooper; Tim Hand; Kim Notario; Chris Buckley; Carrie Noworolnik
Subject:        HP SOLD! for tomorrow’s flight
Importance:     High

Saturn will take the open slot.

IO should be here soon.


Susan Makuch Brown
Director, Advertising and Business Development
Kelley Blue Book –
P: 248.637.7500 ext. 5100
C: 248.840.5545