Internet users know where those ads are and many of them avoid even looking at them. But Ad Fatigue could be to blame for Google’s low 4th Quarter numbers. With a 15% decrease in growth from last year’s ad clicks Google may have something to worry about with its ever increasing ad network.
Google has no trouble getting clicks on its search ads because a much higher percentage of people who click an ad from a search result have purchasing intent. While those who are reading a news article on a Google content syndication site or watching YouTube videos is much less likely to click on the ad because that is not the behavior they are utilizing the site for.
Google is attempting to battle this by increasing the number of ad impressions it serves via partnering with more content sites, and blaming this slowdown in growth on difficulties it is having monetizing its social media properties. But there is a lower conversion on content partner sites and extremely lower conversion for advertisers on social media sites.
Should Google go back to basics? Or will the DoubleClick merger save their Ad Fatigue problems and bring them back to their Glory days?
The opinions expressed in this Weblog are those of the writer and may not represent the opinions of Network World.
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Making money from "social networking inventory"
Sergey Brin: “We have a huge amount of social networking inventory, including the MySpace relationship. I don’t think we have the killer best way to monetize social networks yet." (on Nick Carr's blog)
In other words, a supermarket with a big shelf full of soap in an easily findable aisle labeled SOAP will sell more soap than some jackass at a party trying to sign you up for Amway.
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