Google slipup reveals interesting ad revenue information

[KLB]

http://news.com.com/Google+inadvertently+reveals+internal+projections/2100-1024_3-6047176.html

Somebody goofed at Google and included interal projections on their website. Apparently while Google expects ad revenues to increase from $6.5 billion to 9 billion, they also expect margins to be squeezed. I read this to mean that competition for publishers and Advertisers will force them to increase the percentage they pay publishers and AdWords advertising could fall in price.

[Mike Empuria]

I read this to mean that competition for publishers and Advertisers will force them to increase the percentage they pay publishers and AdWords advertising could fall in price.
Let's hope so. I wonder who Google thinks is responsible for the sqeeze, who their main competition is?

[Cutter]

Definately Yahoo and later MSN. I think it could take a while, but it will certainly happen. The biggest advantage Google has is the huge mass of advertisers using the system.

With online advertising its not that difficult to swap codes based on performance. For those bringing in spare change every day through Adsense, the incentive isn't there, but when the numbers approach a few hundred and definately a few thousand a day, you can practically hire someone full time to adjust the ads day to day. I know guys like Shoemoney are watching these things, and I'm sure more are too.

As for the really big sites like Amazon (who are also starting their own network) I believe they do it on a contract basis. Things could get very competative as there is a high motivation for MSN or Yahoo to even take a loss, just so they can say buy ads with us if you want to get on X, X, and X sites.

[BGray]

Nice article KLB. I guess competition for Adsense might help publishers after all. I've been concerned about bids going lower with more viable platforms to use.

Overture has always been around so there isn't a whole lot of impace with YPN coming on the scene. Any other additions like MS might create some waves.

[chromate]

IBBDB, yes but Overture hasn't been open to smaller publishers until YPN. Speaking of that, it should be coming out of beta soon shouldn't it? I thought it was planned for March?

Interesting slip up anyway. Competition from other networks would certainly reduce profit margins. Seems good for publishers, but I'm not reading too much into it.

[Michael]

They seem to be making a lot of "slip ups". Didn't someone recently upload a presentation relating to gdrive which gave away some info? Related (http://blogs.zdnet.com/Google/?p=121)

[BGray]

IBBDB, yes but Overture hasn't been open to smaller publishers until YPN. Speaking of that, it should be coming out of beta soon shouldn't it? I thought it was planned for March?

Interesting slip up anyway. Competition from other networks would certainly reduce profit margins. Seems good for publishers, but I'm not reading too much into it.

I understand what you are saying Chromate but I was referring to Overture on the Advertising side. Overture and Adwords have really been the only premium platforms for CPC advertising.

My concern is the key word bid levels when MS or others introduce large audience CPC advertising platforms as well.