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December 05, 2004

The future of Adwords & its impact on AdSense

Fortune interviewed Google CEO Eric Schmidt this month, and printed the actual interview. Eric Schmidt made an interesting statement in regards to the future of Adwords.

FORTUNE: Do you think we'll evolve beyond keywords? (The basis for every search today)

SCHMIDT: Oh, very much so.

FORTUNE: To what?

SCHMIDT: Today, we buy and sell keywords, but what you really want to do is move to concepts or themes or groups or something. It's a difficult area because it's hard to automate that, but what we would like is we would like customers to be able to say, 'I'm in this industry, please help me.'

The idea that they would eventually move beyond simply buying and selling keywords, and into concepts, themes or groups brings about some interesting ideas. Once something like that is implemented into Adwords, it could open the door to a variety of options for AdSense publishers.

The AdSense ad serving javascript contains options that are not used by regular AdSense publishers (although beta testers and premium publishers have use of some of them). Some of these include: "kw_type", "kw", and "hints". If advertisers could bid based upon themes or groups, AdSense publishers could use this kind of feature to help targeting, or to help target broader or narrower themes.

Adwords changes can directly impact AdSense publishers, and this would definitely be one of them, if and when Google decides to expand beyond keywords. However, something along these lines sounds to be a positive addition to the Adwords program, and if they decide to give the related flexibility to the publishers as well, an added feature for AdSense as well.

Posted by Jenstar at December 5, 2004 09:37 PM