Traffick - The Business of Search Engines & Web Portals
Blog Categories (aka Tags) Archive of Traffick Articles Our Internet Marketing Consulting Services Contact the Traffickers Traffick RSS Feed

Friday, August 01, 2003

Pay-Per-Click in all its Forms

AOL Time Warner looks to be promoting a new self-serve banner advertising system for small businesses, allowing them to advertise on major AOL Time Warner online properties using a self-serve system provided by a third-party vendor called AdVariant. The cost, says my confirmation email, is "as low as 55 cents per click."

Sound expensive for banners? It isn't, particularly. A major AOL portal competitor recently cold-called a client of mine (based on the keywords he was advertising on with Google Adwords... this would be known as "poaching") with an offer for a CPM-based banner buy in the $15-20 range on a popular keyword. Unfortunately for Yahoo, um, I mean AOL's "major portal competitor," we had a fair bit of data on what a profitable cost per click is, and tried to project the number of clicks we'd receive from this CPM-based buy. The best case scenario looked to be $1.25 per click, with the worst case being as nasty as $10+ per click. My client already knows his cost per click of 20 cents (on average) on Adwords gives him a steady but unspectacular profit, so we said no to that particular offer.

The point: it's clear that with AOL, MSN, Lycos, and Yahoo gunning directly for advertisers, the gloves are off and even seemingly-bulletproof Google looks to be in for a rough ride.

Now that the portals are aggressively pursuing the small-business, self-service advertising market, as expected they're going after direct access to the advertisers and cutting out costly middlemen.

So maybe it wasn't so bad after all that Google became a "portal," or major destination site. "Portal power" rules. Those who own the traffic will seek to monetize that traffic without giving away too much to intermediaries. It's basic economics.

Does this move signal that AOL really will consider alternatives when it comes time to renew its search and advertising partnership with Google / Google AdWords?

Posted by Andrew Goodman




View Posts by Category

 

Speaking Engagement

See Andrew Goodman speak at eMetrics Chicago 2014

Need Solid Advice?        

Google AdWords book


Andrew's book, Winning Results With Google AdWords, (McGraw-Hill, 2nd ed.), is still helping tens of thousands of advertisers cut through the noise and set a solid course for campaign ROI.

And for a glowing review of the pioneering 1st ed. of the book, check out this review, by none other than Google's Matt Cutts.


Posts from 2002 to 2010


07/2002
08/2002
09/2002
10/2002
11/2002
12/2002
01/2003
02/2003
03/2003
04/2003
05/2003
06/2003
07/2003
08/2003
09/2003
10/2003
11/2003
12/2003
01/2004
02/2004
03/2004
04/2004
05/2004
06/2004
07/2004
08/2004
09/2004
10/2004
11/2004
12/2004
01/2005
02/2005
03/2005
04/2005
05/2005
06/2005
07/2005
08/2005
09/2005
10/2005
11/2005
12/2005
01/2006
02/2006
03/2006
04/2006
05/2006
06/2006
07/2006
08/2006
09/2006
10/2006
11/2006
12/2006
01/2007
02/2007
03/2007
04/2007
05/2007
06/2007
07/2007
08/2007
09/2007
10/2007
11/2007
12/2007
01/2008
02/2008
03/2008
04/2008
05/2008
06/2008
07/2008
08/2008
09/2008
10/2008
11/2008
12/2008
01/2009
02/2009
03/2009
04/2009
05/2009
06/2009
07/2009
08/2009
09/2009
10/2009
11/2009
12/2009
01/2010
02/2010
03/2010
04/2010

Recent Posts


You Are the Company You Keep I must admit I was...

Keep Media is a Good Idea Whose Time Has Come L...

Speaking of Hard-to-Understand Metasearch Labeling...

Several Changes in the Works at Altavista There...

Microsoft.com to Searchers: Get Lost No matter ...

HotBot Changes Names to Protect the... Useless? ...

An Even More Vapid Thought Well Cory...I don't ...

Vapid Thoughts About Google I guess all those p...

AdWords Gets a Face Lift The fine folks at Goog...

I Blame Yahoo! Well, it's still happening. T...

 


Traffick - The Business of Search Engines & Web Portals

 


Home | Categories | Archive | About Us | Internet Marketing Consulting | Contact Us
© 1999 - 2013 Traffick.com. All Rights Reserved