I recently received an email posing some very interesting and important questions, and this got me thinking quite a bit. I thought I would share this article with all of you…
As promised here are a few questions I was hoping you could help me out with
What is your general opinion on the Adsense product?
How would you prefer to begin using an ad exchange product, through an individual sales representative, or a web tool that guided you on the benefits and implementation instructions?
As a website owner, what would be your key factors in deciding to place advertising on your site?
I had a thought about the types of ads that appear on ecommerce site, in South Africa many of the larger players sell their own ad space and its usually for a promotion within their site. Do you think its feasible for a generic company to build a product that does that for ecommerce sites? I’m assuming there would be some benefit in not having to manually get into contracts with companies and then change pricing etc. (The example I thought of was if Coca Cola wanted to sell their bottles online for R1 cheaper at Woolworths, Spar, Pick n Pay Shoprite etc they would have to go to an agency who would then deal with these individual sites. Instead Coca Cola could go to Google who would then list these sites as targets and they then pull the ad feed with the relevant product pricing) My apologies for my lack of tech savvy here
My Answers, Thoughts & Opinions:
For a banner or placement ad to replace adsense on a site, I would charge twice the revenue that adsense would bring me in a poor month (December to march in my case), i would run it on a month to month basis, no time specific periods or contract conditions.
Adsense is a superb platform and I used to run my entire business around adsense, by building numerous websites with good quality information and try different adsense advert sizes and try image/text or both rotating as to see which ad worked best and which generated a higher click through rate or which specific advert size generated a higher average amount. Unfortunately the website industry is swamped and very few adsense orientated Companies make profit solely from ad revenue, which is why banner ads are becoming increasingly important as an alternative to adsense.
The amount earned, the click through rates have all dropped significantly, I believe a major factor in this is due to mobile browsing, where people are not necessarily browsing, rather looking for something specific. The adsense adverts today are of a higher and much more relevant quality, so in theory you should earn more, but due to many factors, mobile being the largest in my opinion, this is not the case.
I would prefer using an advertising product through a webtool, this way I would have more control. I have dealt with tools vs. individuals in the past and prefer to handle as much of it as possible myself, which the web tool allows.
As mentioned in more detail above, the purpose of my websites (If I am personally not selling anything) would be to gain revenue via adsense or advertising, so i am always looking for opportunities to gain advertisers on a variety of different topic-covered sites. I would expect a much larger amount for someone to advertise on one of my shop websites, as I would not want to sacrifice revenue by people clicking away.
I do not think Google would build an ecommerce product in the near future, they have so many other forms of making money, and I think if they built something for specific ecommerce, this would benefit the end user more (In my opinion) than it would Google itself, in terms of making money.