Feeds

Google AdWords: 11 herbs and spices revealed

Bidding on ignorance

High performance access to file storage

False Scarcity

Google likes to say that advertisers control the prices on its AdWords platform. It said this particularly loudly during its ill-fated attempt to win approval for its monopoly-expanding ad pact with Jerry Yang and Yahoo!. But as we've argued before, Google maintains far more control than it cares to admit. And squeezing impressions is just another way of doing so.

Yes, Google's impression game is likely an attempt to push clicks in certain directions. In limiting your impressions, it's ensuring you won't take clicks away from certain big-spending competitors. But it's also creating a kind a false scarcity that encourages you to spend more on the clicks you do get.

In essence, Google is driving prices higher by limiting the number of clicks available at the low ranks. With the top ranks getting more impressions, advertisers feel an even greater pressure to up their bids - even though upping a bid isn't always beneficial.

Towards the end of his fight for that GooHoo! deal, Google CEO Eric Schmidt admitted that advertisers "do not understand how the [AdWords] auctions really work." And he insisted the company was re-doubling efforts to educate them. But the truth is that Google prefers to keep them in the dark. ®

High performance access to file storage

More from The Register

next story
Android engineer: We DIDN'T copy Apple OR follow Samsung's orders
Veep testifies for Samsung during Apple patent trial
Windows 8.1, which you probably haven't upgraded to yet, ALREADY OBSOLETE
Pre-Update versions of new Windows version will no longer support patches
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Half of Twitter's 'active users' are SILENT STALKERS
Nearly 50% have NEVER tweeted a word
Batten down the hatches, Ubuntu 14.04 LTS due in TWO DAYS
Admins dab straining server brows in advance of Trusty Tahr's long-term support landing
Windows XP still has 27 per cent market share on its deathbed
Windows 7 making some gains on XP Death Day
Internet-of-stuff startup dumps NoSQL for ... SQL?
NoSQL taste great at first but lacks proper nutrients, says startup cloud whiz
US taxman blows Win XP deadline, must now spend millions on custom support
Gov't IT likened to 'a Model T with a lot of things on top of it'
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.