Barrons Report: "Google Has Been Able to Increase Prices Per Click All Year" | DomainInvesting.com

Barrons Report: “Google Has Been Able to Increase Prices Per Click All Year”

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I found an article on Barrons’ blog that I thought might interest you. In announcing and discussing a stock analyst’s (BGC’s Colin Gillis) share price target increase for Google, the article discusses how Google may be generating more revenue from pay per click advertising.

Some interesting points from the Barrons article that domain investors will care about:

  • Google has been able to increase prices per click all year
  • “the company knows how to “capture the economics associated with improving conversions.'”
  • “Gillis expects 12% growth in click pricing in Q3, the same as Q2, and thinks it will continue above 10% this quarter.

I wonder how much (or if) Frank Schilling’s popular new parking service utilizing a Google feed, InternetTraffic.com, has played into this increase. Whether it has or has not, I have heard that clients are continuing to see higher revenue numbers.

I am not surprised that a competitor is about to emerge, which will ultimately drive even more domain traffic to Google.


About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has sold seven figures worth of domain names in the last five years. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest.


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Comments (8)

    Domains, Oil, Gold, Land, and Food

    I hope Voodoo.com does well as a competing service long term, but so far nothing can even touch InternetTraffic.com.

    They easily pay out double or more of any parking service on the planet. The rest of the parking companies on a Google feed are keeping at larger portion our earnings, and Frank has proven it.

    The big question is whether Google will yank the earnings once everyone has dumped Yahoo and Bing.

    We sure could use some more domain solutions, not ones like RootOrange.com, DomainPower.com or Epik which have done nothing for the industry other than to prove that many of these biz models won’t work, or at least won’t scale well.

    Could you imagine the PPC money we’d all be making if there were two “Googles” with equal power and footing? People forget how much was being paid out years ago per click. Those clicks are still there they just don’t filter to us the same way anymore. At least we have InternetTraffic.com keeping things honest on one side of the equation.

    October 12th, 2011 at 4:43 pm

    gTLDs, Honey, Milk, Silver and Water

    Nice post above, pretty much sums it up.

    There are so many small domainers out there who would be flourishing right now if they weren’t be taken advantage of in such a manner, it’s a real tragedy.

    Frank Schilling has shown many the light, the only question is how long will be it before the big G starts squeezing their earnings aswell.

    Something REALLY big needs to happen, hopefully Frank was the first step.. There are many of us at the bottom struggling to breathe due to the guys at the top just trying to meet their targets for the next “quarter”

    Peace from South Africa.

    October 12th, 2011 at 7:26 pm

    Danny

    It’s been interesting how Google has rolled out quality score in the last few years, as a way of driving up click prices for advertisers. Basically, if your ads get clicked rarely in relation to your competition, you have to pay more, or you won’t get any impressions (based on adrank calculation). I know of lots of advertisers who really don’t understand how this works, and just keep raising up their bids, until they start receiving more impressions. In the past, Google had been leaving a lot of money on the table. I’m not sure if they can keep up click price growth in the future, as things have already been pretty well optimized to this point.

    October 13th, 2011 at 1:08 am

    George

    I am going to say it has maybe .0001% of what Frank has done, and 99.9999% tweaks that google has made.

    Over the last year they have tweaked the way ads are displayed and started to incorporate google products into the majority of above the fold real estate.

    Ads went from 4 lines – Title / Desc1 / Desc2 / URL to a display that makes them look just like the organic results.

    They have put up to 4 ads on top of organic now.

    You may see that youtube is now ranking for everything… guess who owns that and displays ads on it?

    Basically if you do a search on google they have monetized it so well that you will see 100% ads above the fold. In some searches it is like 80% or more google ads / or properties and one or two organic on the entire first results page.

    I know you guys do not like aaron wall but these 2 posts will further show what is taking place:
    http://www.seobook.com/passive-income
    http://www.seobook.com/the-sales-engine

    The images speak for themselves.

    October 13th, 2011 at 11:40 am

      Elliot Silver

      “I know you guys do not like aaron wall”

      @ George

      What would make you say that? I find Aaron’s tools to be very useful, and I’ve never met the guy so I can’t pass any judgment.

      October 13th, 2011 at 12:37 pm

    Logan

    And I’ve never swallowed judgment so I can’t pass any of it either.

    October 13th, 2011 at 1:53 pm

    George

    Well I knew there was some negative vibes going around when he made this post a while back:
    http://www.seobook.com/category-killer-domain-names

    You guys was referring to the domaining world vs you specifically. Did not mean to single out or offend.

    FYI google trades at +5% afterhours. Another great quarter.

    At what point is the whole page ads vs the 60-80% we see today.

    Some say we are a frog in a pot of water with the temp slowly increasing. If they would have made these changes all at once it would have been a slap in the face, but the slow and steady changes go un-noticed. And since all changes are “for the good of the user” why would you argue.

    I would love to see MSFT get more exposure, but the fact of the matter is that they are light years behind when it comes to the ad platform & their traffic volume is low.

    If they made it where you could import your adwords campaign with a few clicks they could take the hassle away and at least grow. Right now though simple changes can take hours whereas on adwords they can take minutes. They need to face the fact that google is the default in PPC for all internet marketers. If they accept their format and build to mimic some of that structure they would be able to grow by leaps and bounds.

    Yahoo had potential but shot themselves when they were too greedy supporting the scamming arbitragers. Advertisers lost faith and spent more of their money at google. Now they syndicate adcenter ads.

    October 13th, 2011 at 4:54 pm

      Elliot Silver

      @ George

      He has his opinions, and I have mine. I have nothing against him at all.

      October 13th, 2011 at 4:56 pm

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