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November 2, 2005

Competition between Google and Yahoo over B2B Text Ads Warms Up

Competition for text ad budgets between Google and Yahoo could be warming up.

Following the allegation of a Google Adsense user that Google penalizes publishers that run web sites with underperforming clicks from Adsense ads, some B2B (publishers that market to businesses rather than consumers) publishers could be tempted to switch to Yahoo's text ads instead.

The publisher's allegation is that Google's method of pricing penalizes low performing sites to the detriment of higher performing ones that are owned by the same publisher. Naturally such an allegation will cause ripples, especially for B2B publishers own and pay for Google Adsense ads.

Google naturally has countered the allegation by stating that "more than conversion rate goes into determining the price of an ad and that factors such as the advertiser's bid, the quality of the ad, other competing ads, the duration of an ad campaign and other advertiser fluctuations."

I'm sure that Google has held back on all the factors that it takes into account in formulating the price publishers’ pay for Google Adsense ads.

Whether the publishers allegation is true or not, one thing it has done is to enable Yahoo to seize the initiative in saying that its system of text advertising is more transparent and that they are willing to share information with B2B publishers plus there system is more responsive.

What do you think? Do you believe Google the publisher's allegation has some truth or is he a "plant", part of a dirty trick aimed at getting B2B publishers to switch their text ads budget away from Google?
see the allegation

David
Small Business Resource

Posted by David at November 2, 2005 6:26 PM

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