Enter your email address:

Delivered by FeedBurner

About This Blog

Josh’s Tweet Stream

  • More tweets

« Free 411 services from 800ideas.com provide value for both marketers and users | Main | Yahoo! Desktop Search debuts »

January 07, 2005

Google announces change in AdWords affiliate policy

By Charlene Li

Today, Google started notifying its affiliate advertisers of a change in its AdWords policy. I had an opportunity to speak with Salar Kamangar, director of product management, about it on Wednesday.

Google will no longer be showing multiple ads with the same displayed URLs for the same search query. Their goal is to reduce duplicate ads from affiliates and to increase the diversity of the ads that appear. If there are multiple ads, the one with the highest “ad rank” (based on clickthrough rate multiplied by the maximum CPC rate) gets displayed.

There are a few implications for both affiliates and retailers with this policy change:

+ The affiliates that highly productive -- or are willing to pay a significantly higher rate to offset lower clickthrough rates -- will appear. An advertiser who doesn’t have a high ad rank can unseat the current advertiser only by increasing its maximum CPC rate. This is because it can’t increase the clickthrough rate for that keyword because its ad isn’t being shown anymore. The affiliate that does appear must continually ensure a high clickthrough rate and/or increase the maximum CPC to keep other affiliates from appearing.

+ Parent retailers could be beaten out of paid search by their own affiliates, especially if those affiliates are more targeted in their ad description, and thus get better clickthroughs. Salar rationalized that even if the retailer is bumped out, it would still benefit from the affiliate getting the sale, but it will be cold comfort to a product manager who’s being measured on search visibility. One additional benefit to the parent retailer -- to justify higher maximum CPCs, affiliates will have to increase their conversion rates, which will benefit the parent retailers.

Google_affss_2Google claims that the main beneficiary will be its users as they will 1) only see one ad per unique URL and 2) see a greater diversity of advertisers. I’ve attached a screenshot of today’s results on a search for “sopranos box set” below. When the policy is implemented, the second ad with the www.amazon.com URL will not appear.

No doubt, this will make the ads somewhat less repetitive – in this case, two of the top ten ads will be removed. But affiliates will simple resort to using different displayed URL variations to get around this constraint– the human editors at Google just make sure that the URLs match the actual link. In the example here, the ads point to different pages on Amazon, ranging from the actual product page to different searches (“box set” versus “Sopranos+The Complete+DVD”).

So while Google’s intentions are good, the main offshoot will be that affiliates and retailers will have to pay even closer attention to their ad creative to stay ahead of the competition. And oh yes, let's not forget that Google will benefit from higher revenues as affiliates administer counterpunches with higher CPC rates and struggle to increase their clickthrough rates.

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c50bf53ef00d834227ed653ef

Listed below are links to weblogs that reference Google announces change in AdWords affiliate policy:

» It's Official - Google Adwords Affilate Policy Announced from Threadwatch.org

So, i wake up this morning to find that the Search blogs are abuzz with the news that Googles long [Read More]

» Google Adwords from Morrison
Google has announced the changes its making to it's Adwords Affiliate policy. [Read More]

» 500 Most Popular Searches from Internet News: Blog Searches
The 25rd edition of the TOP500 list was officially presented today at the International Supercomputer Conference ... [Read More]

» 500 Most Popular Searches from Internet News: Blog Searches
The 25rd edition of the TOP500 list was officially presented today at the International Supercomputer Conference ... [Read More]

» All about Beta Blockers from Top Searches
Information you can trust on beta blockers and more... [Read More]

» Search blog: Our Blog is Growing Up – And So Has Our Index from Search Engine Journal
quick blog post to point out two bad flaws. The methodology used does indeed have a selective bias, towards both: 1) search-engine pages... [Read More]

» Search blog: Our Blog is Growing Up – And So Has Our Index from Search Engine Journal
quick blog post to point out two bad flaws. The methodology used does indeed have a selective bias, towards both: 1) search-engine pages... [Read More]

» News from the Lab from Search Blog
Welcome to the blog of the F-Secure Security Labs, maintained by the personnel in ... This is not the first time winter Olympic games are being targeted by ... [Read More]

» Official Google Blog: Setting trends from Career and Job-Hunting Blog: News, Trends, and More
Just click the "Search" link on your Search History page, or go directly to your ... Search the Google Blog. - Archives -, April 2004, May 2004, June 2004 ... [Read More]

» Fashion & Beauty : Supermodels : Top Models : Fashion Designers ... from Fashion Designers in the Voors Directory
Web Wombat - the original Australian search engine ... Today, Miyake is one of the world's leading fashion designers. ... [Read More]

» Web Search Home Page from Top100 Directory
makes searching the Web easy, because it has all the best search engines piled into one. So you get better results from more of the web... [Read More]

» MP3 Music Downloads - Buy MP3 Music Online - Digital Music Downloads from Music Download Portal
Offers online music destination which enables artists to distribute and promote their music, and enables consumers to search, sample and download music free ... [Read More]

» Search Names Files From 1990 Census from Free Company Name Search
Pick a names file to search:. last, female, male. Enter name(s) to search for (space delimited, case insensitive):. Learn more about the name files and ... [Read More]

» Directory Search :: furniture from Furniture Search
furniture search, find furniture, furniture find, google furniture, furniture search engine, google for furniture, schneidermans.com... [Read More]

» Education Resources Information Center from Advanced Search Page
Basic Search, Advanced Search ... To search for an author, use Last name, or for an exact match enclose name within quotation marks "Last name, Firstname" ... [Read More]

» Pharmacy and Pharmaceutical Information on the Internet from Information on the Internet
Pharmacy and the Internet This page contains information on pharmaceutical publications ... Detailed access statistics for the main PharmWeb servers. ... [Read More]

» JS Online: Milwaukee Journal Sentinel - Page 1 from State Government Offices, Local US Government, City Government
Following are front pages from the Milwaukee Journal Sentinel. Click on the image or link for a full-sized PDF. Online versions of the stories can be found ... [Read More]

» Music Portal Website from Music/ audio / mp3 resources
Most MP3 portals have overcome this by using a combination of user registration, pre-authorisation and transaction batching or polling... [Read More]

» U.S. Military Deaths in Iraq -- 2006 from roops Killed
roops Killed in the Line of Duty [Read More]

Comments

The comments to this entry are closed.