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On top of search, one of the real issues is that they set their ad prices with no market forces at play. $50 per click? Why yes, but only because they say so..

by 12xo 6y ago

On top of search, one of the real issues is that they set their ad prices with no market forces at play. $50 per click? Why yes, but only because they say so... Fake click? We say its real, pay us...

shadowgovt 6y ago
There are several other competing ad networks, as well as traditional advertising models. Nobody actually has to play Google's ad game; companies continue to crunch the numbers and decide it works out best for them in terms of dollar-per-value-add.
- 12xo 6y ago
  No there is not. There is no competition for Google ad words, just like there is no competition for Facebook. They set the market prices, the middle-men add to that cost and sell their services based on value add...
  - shadowgovt 6y ago
    But AdWords is only one advertising model. https://www.singlegrain.com/blog-posts/pay-per-click/alternative-ad-networks/ https://www.singlegrain.com/blog-posts/pay-per-click/alterna...
    - 12xo 6y ago
      The ad network game is a market. There are many competitors and of course, inventory options. Search keywords are not.
chillacy 6y ago
I thought the prices of clicks are determined by auction? So if it's $50 a click it's because your competitors find they can still make money paying that much. Most categories have PPCs in the sub $1.00 range last I checked.
- 12xo 6y ago
  The floor is set by Google or FB or whomever, so there is no real auction. Especially considering the buyer has no other choice if they want to buy that inventory. Its not like you are purchasing a product at market. You're buying from the only supplier. A true auction would have a zero floor. An open market would have other options.
  - chillacy 6y ago
    > Especially considering the buyer has no other choice if they want to buy that inventory. Its not like you are purchasing a product at market. You're buying from the only supplier. Okay but that's because a specific ad placement served to Bob on 4:32 PM on his google search for "back pain Chicago" is a very specific, limited piece of inventory. If these are not real auctions then neither are a lot of things I would have considered real auctions: 1. If a Picasso painting is being auctioned off, again it's the only one, there is no exact replacement piece. Yet it can be auctioned. 2. Auctions on ebay can have hidden reserve prices too, as well as obvious minimum prices. Yet I would have considered these to be auctions as well.

by 12xo 6y ago

On top of search, one of the real issues is that they set their ad prices with no market forces at play. $50 per click? Why yes, but only because they say so... Fake click? We say its real, pay us...

shadowgovt 6y ago

There are several other competing ad networks, as well as traditional advertising models. Nobody actually has to play Google's ad game; companies continue to crunch the numbers and decide it works out best for them in terms of dollar-per-value-add.

12xo 6y ago
No there is not. There is no competition for Google ad words, just like there is no competition for Facebook. They set the market prices, the middle-men add to that cost and sell their services based on value add...
- shadowgovt 6y ago
  But AdWords is only one advertising model. https://www.singlegrain.com/blog-posts/pay-per-click/alternative-ad-networks/ https://www.singlegrain.com/blog-posts/pay-per-click/alterna...
  - 12xo 6y ago
    The ad network game is a market. There are many competitors and of course, inventory options. Search keywords are not.

chillacy 6y ago

I thought the prices of clicks are determined by auction? So if it's $50 a click it's because your competitors find they can still make money paying that much. Most categories have PPCs in the sub $1.00 range last I checked.

12xo 6y ago
The floor is set by Google or FB or whomever, so there is no real auction. Especially considering the buyer has no other choice if they want to buy that inventory. Its not like you are purchasing a product at market. You're buying from the only supplier. A true auction would have a zero floor. An open market would have other options.
- chillacy 6y ago
  > Especially considering the buyer has no other choice if they want to buy that inventory. Its not like you are purchasing a product at market. You're buying from the only supplier. Okay but that's because a specific ad placement served to Bob on 4:32 PM on his google search for "back pain Chicago" is a very specific, limited piece of inventory. If these are not real auctions then neither are a lot of things I would have considered real auctions: 1. If a Picasso painting is being auctioned off, again it's the only one, there is no exact replacement piece. Yet it can be auctioned. 2. Auctions on ebay can have hidden reserve prices too, as well as obvious minimum prices. Yet I would have considered these to be auctions as well.