Google-Certified Ad networks in AdSense – Sounds Fishy Than Interesting!
Though this might be old news for most of you guys, but I got the news late and thought of speculating a little. Yes, after long dilly-dallying, Google has now opened its doors to other Ad networks to compete against its Google Adwords in the most infamous online auction system to get a spot in Google Adsense network of websites which covers almost the entire web.
But it came to me as a surprise when I saw that ONLY AdSense publishers in North America and Europe will be allowed to participate (as of now).
So, Google puts it conveniently that these ads will duly compete with AdWords ads and will help publishers earn the most from every ad impression by increasing competition. At the same time, publishers will have full control over which ads and ad networks can appear on their pages. For those who are eager to know more can check out this video:
Great, I say! But wait. Now why is Google being to generous? Now while trying to understand the inner (speculative) truth, I bumped into John Battelle’s comment on the same in his blog. I think whatever he said makes heck of a sense. Also I would recommend to read some of the comments in the YouTube video that Google Adsense Team posted. (BTW, I saw one interesting thing while scanning through the YouTube video – if you go through the “Statistics & Data” tab in YouTube, then you’ll see that the video is most popular in India than many European Countries; still Google didn’t choose India or Asia rather for the so-called beta-testing).
Now coming back to the point, I’ll try to iterate some of the plausible reasons behind Google’s decision to add other ad-networks to its own network:
1. Is this an admission by Google that they do not have good enough display advertising inventory and/or relationships? Maybe, maybe not. Seems more of a statement that Google considers Adsense more of a platform for advertising, rather than a network into itself.
2. If you ran an ad network, would you want to do this? Well, ad networks tend to optimize for the most money. If Adsense gives them more money, they just might want to do this.
3. What about the data? Google will learn an awful lot about what is going on with each network once they plus themselves into the Adsense hivemind. And in the end, isn’t that what it’s all about? Remember what happened with search? AOL, Netscape, Yahoo, and many others fed the Google search beast until Google had all the data and therefore the best search engine.
I think these comments sums up what Google has in mind. I say great, if in the longer term it benefits an individual user but I don’t think so thats the case here. What Google is running after is to decimate competition in online ad networks and create a monopolistic ground where publishers don’t have any other options to choose for better (in this case Google’s monopolized eCPM’s) ad networks for higher payouts. But only time will tell how this space shapes up!
Note: With regard to similar topic, today I read yet another interesting article from AdAge which sounds more why Google w.r.t. other ad networks would be a tough nut to crack. The article illustrates why online ad network apocalypse was a fad and most of them are still surviving. Worth a read with those hard facts and numbers.
Comments are closed.
Ads
Subscribe & Follow
Archives









[...] View original post here: Google-Certified Ad networks in AdSense – Sounds Fishy Than Interesting! [...]
Your reasoning doesn't add up to your final summation. First, all ad networks already buy from each other in order to increase their reach. The network that I work for regularly receives orders from both domestic and international networks to buy inventory. And yes, we have an internal verification program that allows us to pick and choose which networks we will allow to bid for our inventory. If Google is now open to selling its AdSense inventory to other networks, there's no great conspiracy involved. They're just joining the party that's already rocking.
Also, this paranoia about Google collecting data just by allowing users and networks to plug into their systems is downright asinine. A sense of perspective is necessary – if they were to go about collecting whatever data they wished, they'd be shut down by the Department of Justice before the weekend was out.
I agree Sumant that my summation is partly lopsided. But when Google rampages on multifront, its bound to be skeptical. But I would like you to focus on this sentence –
"Remember what happened with search? AOL, Netscape, Yahoo, and many others fed the Google search beast until Google had all the data and therefore the best search engine". Yes, I know that it takes more than just data to supersede competition but what the heck, don't we know that Google is master in that craft.
It's just a hypothesis that I've presented. And also remember, we are talking about Publishers and not users here who might be at loss in the later stage if Google is going the way that I presented. So its usual thing for a regular user since he/she might know that undercurrent even.
Hope this clarifies my PoV.
Sampad, adsense isnt everywhere around the web – its just at the long tail and thus most of us common man(bloggers) tend to overvalue adsense.
what adsense is doing is simply opening its inventory for more networks so they get access to more advertisers – the whole model of ad network is such that higher the number of advertisers bidding for one slot – higher the benefit to both publisher and ad network – while the advertiser ends up paying more
i dunno what data google could collect from this – they arent getting access to other network’s ad serving tools or data – its an industry practise and google is just shedding its supposed arrogance and doing what it has to do to survive !
Abhishek, what Google is trying to do is simple from my PoV (though speculative). Google is not good in Display which many other ad networks are. Through this system now Google will be able to lure display advertisers who in turn will be able to bid in its real time auction system.
On the hindsight, more bidders will help raise the price and hence help Google to make more money. Publishers are just guinea pig in the whole equation as a matter of fact.
Also Google gets to see other networks' CTR's, Price, Revenue, Ad Performance, Ad Rotation info, Ad placement data etc. The more it knows, the more the system gets smarter about how to sell directly to the same clients ad networks are selling to. Hence, Google emerge the strongest with its long tail of ad serving network.
Why post it as 'Anonymous'?
Anyways, I think its a valid point you've put forward here. Abhishek I think the conversation is about will publishers benefit from it or not. Though only time will tell (may be I can post about the same in the coming months seeing if this feature when enabled increases my revenues) but prima facie it seems Google with this strategic decision has got more for himself than others.
I agree that ad networks need to carefully think this over. Short term it might be interesting, long term: what's their use, their added value for customers vs Google? It's easier to use 1 system? I agree, but systems allow to integrate adsense for free inventory as well. OpenX eg.
Hi Tom
I've never used OpenX but I just went through it and it seemed interesting. By the way, how it is different from many plugins that we've seen in WordPress?
Can you please clarify more on that?
Hi Tom
I've never used OpenX but I just went through it and it seemed interesting. By the way, how it is different from many plugins that we've seen in WordPress?
Can you please clarify more on that?
[...] Continued here: Google-Certified Ad networks in AdSense – Sounds Fishy Than … [...]
I second your thoughts on this issue. I feel this issue is going to be red hot in the near future since whatever Google touches has big pay-off for competitors. Lets see whats in store for us users as well.
visit http://marketing26.blogspot.com/ for more info.
[...] Google-Certified Ad networks in AdSense – Sounds Fishy Than … [...]