News

Should Google Brace Itself for an Ad Backlash?

Written on: Apr 4, 2008
Author: Kathleen |
: Share; Should Google Brace Itself for an Ad Backlash?

ADOTAS – Will Google face a backlash from advertisers because of its plummeting click-through rates? Here’s the thing: because of a recent price change, advertisers are now paying more for less.

In March, Google changed its AdWords algorithm, which means that some advertising are paying much higher rates … yet their conversion rates have hit the skids.

“If it were just a rate increase, I would have tolerated it. But my ad rates have doubled and I’ve got no business,” an anonymous tipster told Wired.com.

Google, for its part, says that its drop in paid clicks is … intentional. The Web titan justifies the higher ad rates, saying that serving fewer, but more relevant ads more than makes up for the lower conversion rates.

But advertisers ain’t having it, Wired reports.

“I am seeing large-scale advertisers whose general cost per clicks is trending up … and they’re seeing impressions go down,” Jeremy Chatfield, an analyst at Web marketing firm Merjis, told Wired.com.

Reader Comments.

No comments yet

Tags: adwords, click-through-rates, Google, interactive-advertising, internet-advertising-news, internet-marketing-advertising and PPC-marketing

More News

Right now, at the beginning of 2012, what are you watching the most closely for its ad and marketing opportunities?
Mobile. Smart devices have become standard, and advertising is only going to become more creative there.

Online video. It's a real competitor to TV now, and it presents really interesting ways to engage viewers.

Social media. The new Facebook timeline and the surge of Google+ have cracked the game wide open again.

Tempting as it might be, I don't want to get too involved in one aspect.

See, I think this might be a good time to see what would happen if we revisited MySpace, but made the ads slightly bigger... with more strobe effect.

View Results
Loading ...

Polls Archive

Latest News

Funding in Brief: $10M for Spongecell, $8M for Prolexic February 9th 2012 ADOTAS – Rich media ad company Spongecell has raised $10 million [...] more »
Google AdMob Axes Minimum Bids, Targeting Fees February 9th 2012 ADOTAS - As of Feb. 15, Google will change its [...] more »

Infographic: HootSuite Analyses Social Media Impact of Super Bowl Ads February 7th 2012 ADOTAS - So, it’s the Tuesday after the Super Bowl, [...] more »
Facebook to Serve Mobile Ads in Coming Weeks February 6th 2012 ADOTAS – According to a Financial Times report, Facebook will [...] more »
Survey: 39 Percent of Mobile Users Responded to Super Bowl Ads Via Mobile February 6th 2012 ADOTAS - During the Super Bowl yesterday, mobile ad network [...] more »
Sponsormob Leads the Way Into RTB for Mobile February 3rd 2012 ADOTAS – For more than half a decade, Berlin-based tech [...] more »
Weird Study: Mobile Purchasing While in the Bathroom on the Rise February 3rd 2012 DM CONFIDENTIAL - According to 11mark, three-quarters of Americans with mobile [...] more »

News Archive

Features

Attribution Online: Introducers and Influencers and Closers… Oh My! February 9th 2012
With gTLDs, Global Branding Starts with a Name February 9th 2012
Rethinking the Online Advertising Ecosystem, Part One: Independent Publishers February 8th 2012
Case Study: Social Ad Effectiveness February 8th 2012
Video: “Build an SEO Foundation” Excerpt February 8th 2012

Features Archive

Spotlight

Sponsormob Leads the Way Into RTB for MobileADOTAS – For more than half a decade, Berlin-based tech firm Sponsormob has remained relevant in an industry characterized by [...] more...

Adotas

Where media buyers start online

Navigation

Supplementary Navigation