{"id":542,"date":"2008-06-19T07:23:48","date_gmt":"2008-06-19T12:23:48","guid":{"rendered":"http:\/\/www.mccordweb.com\/weblogs\/?p=542"},"modified":"2012-03-04T18:50:40","modified_gmt":"2012-03-04T22:50:40","slug":"just-how-is-google-making-so-much-money-from-ads","status":"publish","type":"post","link":"https:\/\/www.mccordweb.com\/weblogs\/2008\/06\/19\/just-how-is-google-making-so-much-money-from-ads\/","title":{"rendered":"Just How is Google Making So Much Money From Ads???"},"content":{"rendered":"<blockquote><p><strong>This does not let Google raise prices for advertisers. <\/strong>Google <a id=\"c..s\" title=\"does not set the prices manually for ads\" href=\"http:\/\/googleblog.blogspot.com\/2008\/05\/how-auctions-set-ad-prices.html\">does not set the prices manually for ads<\/a>; rather, advertisers themselves determine prices through an ongoing competitive auction. We have found over years of research that an auction is by far the most efficient way to price search advertising and have no intention of changing that. <strong id=\"sofq0\"><br \/>\n<\/strong><\/p>\n<p><strong><\/strong><\/p><\/blockquote>\n<p>Just how is Google making so much money from Google AdWords? Well based on the comment taken from <a title=\"Google Search blog announcement on ads on Yahoo\" href=\"http:\/\/googleblog.blogspot.com\/2008\/06\/our-agreement-to-provide-ad-technology.html\" target=\"_blank\">this Google blog post<\/a> speaking about Google now showing ads on the Yahoo network, it is the advertisers who are soaking themselves not Google.<\/p>\n<p>Yes that&#8217;s right, but escalating prices in your own industry in an effort to own the number one spot for your ad by price and not by quality advertisers are jacking up the prices on themselves. According to this quote by Google, we have no one to blame but ourselves!<\/p>\n<p>If you understand the supply and demand curve, this is economics in action. If people decide to pay less, prices will decrease due to a lower demand and the cost per click will drop. What I have found is that in some cases dropping the cost per click will actually generate more impressions and clicks and not significantly hurt the page position in the Google AdWords advertising results. This tactic has crashed some accounts in very competitive large metro markets, but is a workable approach for many. So take a stand and decide to pay less for Google AdWords, what you pay now impacts what Google charges. They didn&#8217;t make billions last quarter for nothing!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Just how is Google making so much money from Google AdWords? Well based on the comment taken from this Google blog post speaking about Google now showing ads on the Yahoo network, it is the advertisers who are soaking themselves not Google.<\/p>\n<p>Yes that&#8217;s right, but escalating prices in your own industry in an effort to own the number one spot for your ad by price and not by quality advertisers are jacking up the prices on themselves. According to this quote by Google, we have no one to blame but ourselves!<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202,357],"tags":[182],"class_list":["post-542","post","type-post","status-publish","format-standard","hentry","category-google-adwords","category-news-trends","tag-adwords"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Just How is Google Making So Much Money From Ads??? | The Web Authority<\/title>\n<meta name=\"description\" content=\"Just how is Google making so much money from Google AdWords? Well based on the comment taken from this Google blog post speaking about Google now showing ads on the Yahoo network, it is the advertisers who are soaking themselves not Google.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mccordweb.com\/weblogs\/2008\/06\/19\/just-how-is-google-making-so-much-money-from-ads\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Just How is Google Making So Much Money From Ads??? | The Web Authority\" \/>\n<meta property=\"og:description\" content=\"Just how is Google making so much money from Google AdWords? Well based on the comment taken from this Google blog post speaking about Google now showing ads on the Yahoo network, it is the advertisers who are soaking themselves not Google.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.mccordweb.com\/weblogs\/2008\/06\/19\/just-how-is-google-making-so-much-money-from-ads\/\" \/>\n<meta property=\"og:site_name\" content=\"The Web Authority\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/mccordweb\" \/>\n<meta property=\"article:published_time\" content=\"2008-06-19T12:23:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2012-03-04T22:50:40+00:00\" \/>\n<meta name=\"author\" content=\"Nancy McCord\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@mccordweb\" \/>\n<meta name=\"twitter:site\" content=\"@mccordweb\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nancy McCord\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.mccordweb.com\\\/weblogs\\\/2008\\\/06\\\/19\\\/just-how-is-google-making-so-much-money-from-ads\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.mccordweb.com\\\/weblogs\\\/2008\\\/06\\\/19\\\/just-how-is-google-making-so-much-money-from-ads\\\/\"},\"author\":{\"name\":\"Nancy McCord\",\"@id\":\"https:\\\/\\\/www.mccordweb.com\\\/weblogs\\\/#\\\/schema\\\/person\\\/ff9d4b511f78814fa53f990f16f66425\"},\"headline\":\"Just How is Google Making So Much Money From Ads???\",\"datePublished\":\"2008-06-19T12:23:48+00:00\",\"dateModified\":\"2012-03-04T22:50:40+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.mccordweb.com\\\/weblogs\\\/2008\\\/06\\\/19\\\/just-how-is-google-making-so-much-money-from-ads\\\/\"},\"wordCount\":273,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.mccordweb.com\\\/weblogs\\\/#organization\"},\"keywords\":[\"AdWords\"],\"articleSection\":[\"Google AdWords\",\"News &amp; Trends\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.mccordweb.com\\\/weblogs\\\/2008\\\/06\\\/19\\\/just-how-is-google-making-so-much-money-from-ads\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.mccordweb.com\\\/weblogs\\\/2008\\\/06\\\/19\\\/just-how-is-google-making-so-much-money-from-ads\\\/\",\"url\":\"https:\\\/\\\/www.mccordweb.com\\\/weblogs\\\/2008\\\/06\\\/19\\\/just-how-is-google-making-so-much-money-from-ads\\\/\",\"name\":\"Just How is Google Making So Much Money From Ads??? | The Web Authority\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.mccordweb.com\\\/weblogs\\\/#website\"},\"datePublished\":\"2008-06-19T12:23:48+00:00\",\"dateModified\":\"2012-03-04T22:50:40+00:00\",\"description\":\"Just how is Google making so much money from Google AdWords? 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