Comments on: Google Quality Score Raises Profits 69% http://www.pepperjam.com/blog/2007/04/21/google-quality-score-raises-profits-69/ Thu, 20 Nov 2008 13:51:59 +0000 http://wordpress.org/?v=2.0.4 by: Google Profit Score - Blackbeard SEO http://www.pepperjam.com/blog/2007/04/21/google-quality-score-raises-profits-69/#comment-7736 Mon, 07 May 2007 14:26:29 +0000 http://www.pepperjam.com/blog/2007/04/21/google-quality-score-raises-profits-69/#comment-7736 [...] I recently blogged about Google’s quarterly profits jumping 69% mostly in part to the new Quality Score. Today I was thinking about quality score and how it really changes the Google advertising ecosystem. See, AdWords is the centerpiece of a much larger marketing system that includes AdSense, video ads, and even PPC ads that you see on domainer landing pages. The so called “quality score” assigns an arbitrary score to an ad based on factors that are largely unknown. The real changes that “quality score” provides are a negative impact on the ROI for most AdWords advertisers and a positive impact on Google’s profit margins. Thus, in effect, the profit scales have tipped back in Google’s favor a bit more because of “quality score”. [...] […] I recently blogged about Google’s quarterly profits jumping 69% mostly in part to the new Quality Score. Today I was thinking about quality score and how it really changes the Google advertising ecosystem. See, AdWords is the centerpiece of a much larger marketing system that includes AdSense, video ads, and even PPC ads that you see on domainer landing pages. The so called “quality score” assigns an arbitrary score to an ad based on factors that are largely unknown. The real changes that “quality score” provides are a negative impact on the ROI for most AdWords advertisers and a positive impact on Google’s profit margins. Thus, in effect, the profit scales have tipped back in Google’s favor a bit more because of “quality score”. […]

]]> by: » Google is the Wal-Mart of the web - Web Publishing Blog http://www.pepperjam.com/blog/2007/04/21/google-quality-score-raises-profits-69/#comment-7543 Mon, 23 Apr 2007 04:01:23 +0000 http://www.pepperjam.com/blog/2007/04/21/google-quality-score-raises-profits-69/#comment-7543 [...] I should probably lay off of the negative Google posts, but it seems to be a hot topic now of days. [...] […] I should probably lay off of the negative Google posts, but it seems to be a hot topic now of days. […]

]]> by: Kris Jones http://www.pepperjam.com/blog/2007/04/21/google-quality-score-raises-profits-69/#comment-7529 Sun, 22 Apr 2007 15:08:35 +0000 http://www.pepperjam.com/blog/2007/04/21/google-quality-score-raises-profits-69/#comment-7529 Blackbeard, Interesting post! It's not a surprise that Yahoo launched Panama as a result of falling so far behind Google in terms of paid search revenues and profit. It's also no surprise that two weeks ago at SES - New York MSN announced that they too will be using a "Quality Score" analysis to set bid prices and rank ads. In terms of Google using affiliate marketing data to determine ad value...that's makes some sense. Ultimately, the question becomes whether or not Google will ever allow advertisers to automate return-on-investment. If they do then you have a situation where competition will drive up ROI's since smaller companies wanting to grow or larger companies willing to overspend to dominate will drive prices high - who's the real winner if Google provides ROI automation? Google, over the long run, advertisers over the short run. Thanks for the guest blogger post - it definitely has me intrigued! Kris Blackbeard,

Interesting post!

It’s not a surprise that Yahoo launched Panama as a result of falling so far behind Google in terms of paid search revenues and profit. It’s also no surprise that two weeks ago at SES - New York MSN announced that they too will be using a “Quality Score” analysis to set bid prices and rank ads.

In terms of Google using affiliate marketing data to determine ad value…that’s makes some sense. Ultimately, the question becomes whether or not Google will ever allow advertisers to automate return-on-investment. If they do then you have a situation where competition will drive up ROI’s since smaller companies wanting to grow or larger companies willing to overspend to dominate will drive prices high - who’s the real winner if Google provides ROI automation? Google, over the long run, advertisers over the short run.

Thanks for the guest blogger post - it definitely has me intrigued!

Kris

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