Saturday, June 14, 2008

Get More Money from Less Ads

There are several factors that affect the price of the Ads.

In general, Google tries to manage your ads in a way you'll get the maximum ROI (Return of Investment).

Also, in general, the highest paying ads will appear on the bottom of the list. But how can you actually get more money from fewer ads?

Well, it's quite simple. Imagine there are 4 high paying ads on a certain keyword. Now imagine you have 2 blocks of ads, with 4 each. The highest paying ads will be divided in the 2 blocks, on the bottom positions. However, people tend to click on the first ads on the list. This means you'll receive less from each click. Now imagine you have just one block of ads. The 4 high paying ads will be displayed, so you'll likely receive more money.

But why does Google place the highest paying ads on the bottom of the list? It's quite simple: Advertisers pay-per-click, they don't pay-per-impression. Ads on the bottom of the lists are less clicked, but that shows interest on the website. The people who click on those ads are more interested in the product.

So remember: Quantity is not always Quality.

No comments: