Does The AdSense URL Hurt Publishers?
Of visitors who see ads on your website, 30 percent admit to sometimes clicking on an ad.
Meanwhile, 61 percent look at the ad, process it, and visit the advertiser later, without clicking on the ad.
With Pay-Per-Click advertising getting enormously popular, that means that publishers who display PPC ads never get paid, even though their ads are effective for that 61%.
The 61% is a complete validation of the idea of brand advertising, that it is indeed twice as useful to get your name in the minds of visitors, as it is to get them to click.
Google has ads that pay out for just being shown, but it has no type of ad that combines payments for clicks with payments for showing the ad.
If three times as many people visit an advertised site as those who are actually reported on clicking on it, then publishers are losing a ton of money. What can be done?
Well, one option is for Google to stop showing the advertiser’s URL in ads, or at least let publishers turn it off optionally. Advertisers should have to pay a more complicated structure, with ads that include a website URL costing more money than those who don’t. Google should also introduce a combo ad, one that combines CPM (pay for ad impressions) with CPC (pay for ad clicks), charging a complex formula that charges less for impressions and more for clicks.
A combo ad wouldn’t work everywhere, as there are a lot of cheats in the AdSense system, but high-level trusted publishers should have access to it. Advertisers should have the option of getting their ads in at a lower cost-per-click than rival bidders, if they agree to pay for impressions. As an example, an ad that bid $10 per click would be considered equal to an ad that bid $3 for 1,000 impressions as well as $9 per click.
Am I crazy? Would a third type of ad payment kill Google’s ad system and overcomplicate things, or would advertisers welcome an opportunity to get lower per-click ads in the system by paying up front? No one can argue that PPC is perfect, and the Times article makes that clear. I’d like a combo ad as an option that might make everyone happy.
(via Amit Agarwal, who suggests a different AdSense change that might make the ads more user-friendly)