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January 05, 2005

Black Wednesday for AdSense? Or a jump in earnings for publishers?

January 12th is the date that the new Adwords changes will take affect, that will only allow one affiliate to advertise per merchant. The impact to AdSense publisher's revenue could be significant.

Many publishers are used to seeing many similar ads on a page that lead eventually lead to the same affiliate program. But if the one advertiser per merchant also applied to content match, this could mean a tremendous loss of ad inventory for AdSense publishers to display. And for those publishers whose sites tend to display mostly affiliate ads, the income loss could be staggering.

However, if Adwords/AdSense get together on this and allow one advertiser per keyword per merchant on the search side, yet allow as many advertisers per keyword per merchant on the content side of things, this could actually result in more advertisers opting into content. If they cannot afford the bid price in search, advertisers would still have the chance of getting click throughs in content, where it could be more affordable if all the advertisers are not trying to outbid each other for a single spot in the serps.

The official announcement by Google Adwords is rumored to be Thursday January 6th, with the one affiliate per merchant rule taking effect on Wednesday Januaruy 12th. This is an issue both advertisers and publishers need to watch closely. Depending on how this is handled, and how significant the drop in earnings is for publishers, it could represent a turning point in how happy publishers are to stick with AdSense and not try out some of the other competitors out there.

Posted by Jenstar at January 5, 2005 09:51 AM

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Comments

it official... the email i received follows.

================================================

Google AdWordsâ„¢ Announcement: Affiliate Policy Change

Hello from the Google AdWords Team:

In January 2005, Google will incorporate a new affiliate advertising policy that is designed to provide a better user and advertiser experience.

What is changing:

With this new affiliate policy, we'll only display one ad per search query for affiliates and parent companies sharing the same URL. This way, users will have a more diverse sampling of advertisements to choose from. As always, your ad will be displayed based on its Ad Rank for given searches, which is determined by a combination of your ad's maximum cost-per-click (price) and clickthrough rate (performance).

For instance, if a user searches for books on Google.com or anywhere on the Google search and content networks, Google will take an inventory of ads running for the keyword books. If we find that two or more ads compete under the same URL, we'll display the ad with the highest Ad Rank.

How this will affect you:

If you're an affiliate, this means that you no longer need to identify yourself as an affiliate in your ad text. However, your current ad text will continue to display your affiliate status until you change it.

Affiliates or advertisers using unique URLs in their ads will not be affected by this change. Please note that your Display URL must match the URL of your landing page, and you may not simply frame another site.

What you should do:

We recommend that you continue to monitor your ads' performance and optimize your ads as needed to ensure they're bringing you the best results. Please visit our Optimization Tips page for more information.

By improving our ad relevancy, we believe that users will have a better search experience, which will help you reach more potential clients in the future. We'll continue to make improvements to AdWords over time to further improve the user experience and help increase the performance of your ads.

We look forward to continue providing you with the most effective advertising available.

Sincerely,
The Google AdWords Team

Disclaimer: As a business Google must make decisions regarding the advertising we accept. As stated in our Terms and Conditions, we reserve the right to exercise editorial discretion when reviewing AdWords ads created within the program. This only concerns our advertising and in no way affects the search results we deliver. Google offers broad access to content across the web without censoring results.

Posted by: Sony PSP at January 6, 2005 08:06 PM

This is going to hurt.....bad.

AJ

Posted by: AJ at January 8, 2005 04:07 AM

What is initially going to happen is the development of FPAs (Full Page Ads) that affiliates will have to host and then send them on to the sale site.
It is the destination URL that the system will be double checking.

Posted by: AussieWebmaster at January 9, 2005 07:12 PM