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by alizaki 5675 days ago
AdSense, to my knowledge, doesn't only optimize for maximum CPC but rather for max earnout for Google, a large part of which is the likelihood of you clicking the ad. This is a fair determination of the quality of the "deal"/ad, I suppose.
2 comments
wacheena 5675 days ago
In my experience modern ad systems use, among other things, CPC x CTR. Using CPR x CTR is good for all stakeholders: 1. Advertiser value - the better/well targeted the ad, the lower the cost 2. Publisher value - higher CTR means more clicks, means more $$$. 3. And most importantly, user value - higher CTR is generally a good indicator of better targeted ads
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entrepreneurial 5675 days ago
Really good points. Thanks for the feedback. You still have to layout money before you make any, hence the reason why the groupon model is so enticing from an advertiser's perspective.
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entrepreneurial 5675 days ago
Right. My point is as an advertiser, I have to lay out money with the hopes of making more back (ROI). With the groupon model, I don't have to lay out any money to "advertise" and I pay for the ads once I get paid.
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phillipmstewart 5675 days ago
The significant difference seems to be that Groupon takes a 24 hour "risk" and pushes content to its users via email. If a platform like AdWords offered free advertising that delivered only the most relevant advertising to users, the list of companies hoping to have their ad seen would be enormous.

It is interesting to consider whether expertly targeted ads would see as many click throughs as the ads companies pay to have us see now.

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entrepreneurial 5675 days ago
Right, but the categorized list of businesses ads are enormous already.

I'm not saying replace the models they have in place, but just offering up something different from a social perspective which google doesn't seem to have a lot of luck with. It will really even the playing field for non-big dollar advertisers.

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phillipmstewart 5675 days ago
Are you suggested gathering information about users and providing ads based upon it?
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entrepreneurial 5674 days ago
Yes. This will rank the best deals as they will emerge via the high amount of clicks via the social aspect and sharing.
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