2 ms·
That is not really accurate. I used to work with this madness. Google ad displays/impressions are the result of transactional data micro-auctions. If there i
by austincheney 8y ago
That is not really accurate. I used to work with this madness. Google ad displays/impressions are the result of transactional data micro-auctions. If there is high demand for a particular and well known data market, like Las Vegas hotel booking, the ad rate will be more.
The auction rate is determined by the winning bid rate of the competing content providers. In the Las Vegas hotel booking example the hotel properties might pay up to $16 for their ad display along side Google search results and up to $24 for a click through. Most ads, though, are rated at pennies. Anything that can achieve bid rates over $0.50 is a gold mine.
So, yes, some providers will pay far more than $7.00 for a click, but that is extraordinarily rare. This is even more rare when source and context are taken into account. Impressions that look organic, like on top of search results, are worth more than those that look like spam. I highly doubt ads that look like spam on a parked domain are doing more than pennies, likely fractions of a penny. The commonality of low rates and weak impressions on online advertising is also why Facebook shares aren't worth more than they are given the traffic and dedicated eyeballs that they have.