Adsense as a Platform and What it Means for Publishers

Wednesday, August 26th, 2009

Google Adsense shows off its platform.

Google Adsense is not an ad network. It’s an advertising platform, and Google (NASDAQ: GOOG) is taking steps to open it up.

Adsense is taking its next step to opening up the platform by allowing other display advertising companies to place ads on Adsense Publishers’ sites.

For example, Google may be able to offer you a $1 CPM on display ads on your site, while another ad network can offer $2. The other ad network’s ad would show on your site, resulting in more money in your pocket.

I foresee Google becoming an ad optimization system, similar to the parking systems that used automate which parking company to send your traffic to.

So isn’t this great news? It seems so on the surface. It should mean more money and convenience for publishers in the short term. Small publishers will win the most, as they don’t have the clout or time to shop around to different display advertising networks.

In the long run, competing ad networks may become more reliant on Google. Google will provide easy ad inventory to them, which will result in ad networks taking their eye off the ball on acquiring more ad inventory. You may even see ad networks pop up that have no inventory and focus solely on getting high-paying advertisers.

Further Reading:

  1. Adsense Discloses Revenue Share: 68%
  2. Yahoo to challenge Google Adsense
  3. Click Forensics, Publishers, Ad Networks Facing Traffic Quality Challenge

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    August 28th, 2009 | 8:40 am

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