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by ChuckMcM 4145 days ago
Marco makes a solid point. The challenge for Google of course is that their CPC has been eroding for years now. That means the only way to make their number is to increase the available ad slots on the page, which pushes organic folks off the page. You can of course spend AdWords dollars and stay on the page, but then your RPM is offset by your ad spend and you're margins just get smaller anyway.

Bloggers who use AdSense get stuck even worse, they aren't getting organic link love and they are seeing the CPC decline as a flat out revenue decline.

The trend to apps is to get away from that of course. Your app will always show your content. Sites like Reddit and HN become more relevant traffic generators. And "portal" type sites like Medium will provide variability with their 'stable' of writers.

I totally agree with him that to "fix" this one has to go at it to build the thing they want. I'm guessing that is a combination of advertising and subscription revenue but we'll see.

1 comments

"CPC, RPM"

acronym alert?

Pretty standard for anyone who follows anything about advertising:

- CPC = Cost Per Click

- RPM = Revenue Per Mille (revenue per thousand impressions)

Both the C and R are sometimes used interchangeably - e.g. "RPC" and "CPM" mean roughly the same thing. It really just depends on which entity and which way the money's flowing if you think of the players in an advertising game:

[advertiser] -> [advertising platforms - e.g. Google] -> [publisher / traffic source]

One player's cost is another player's revenue.

thx @ydant, never heard this before. Very nice way to describe the process.