NYT’s Love Letter to Google Ads (and why you should care).
Randall Stross writes today in the NYT about how Google’s model of text-only, relevant ads helped to push the online ad industry away from the “punch the monkey” and the ubiquitous pop-under ads of yesterday (I am not entirely sure that those days are gone…).
A fascinating look at the history of Google Ad Sense’s development really. The thing that got me thinking was this line:
It did take a little while before prospective sponsors were willing to try Google’s text ads, but soon enough, they attracted the intrepid. Mr. Brin and Mr. Page deliberately offered advertisers instant gratification: pull out your credit card, plunk down a $50 deposit, send in four lines - and in a blink it would be out there, having been automatically processed without a pre-publication review by a humanoid. (Google’s language police would follow up later, if need be.)
Ms. Mayer credits small companies for helping to draw the attention, and ad dollars, of Google’s big accounts. Because of the sheer number of commercial sites run by small operators - like the one that has bought a sponsored link tied to the unappreciated sport of extreme ironing - their customers add up to a very large number.
(emphasis added)
So, the thing that is important here is that there are extreme efficiencies with google ads that are not achievable with other bulk purchases and the cost-per-acquisition is stellar (if you are doing it right).
Basically, since you can name your price and pick your keywords, you can snag a lot of interested people into your program. If you are a candidate, chances are pretty good that your keywords are not being highly sought after, so you should be able to get CPC (cost per clicks) in the sub-$0.10 range. That means you will get a lot of qualified clicks for not a lot of money.
You will, of course, want to make sure your landing page is as effective as possible, since you are paying for the CLICKS not the signups.
(Disclosure: I do own 0.69 shares of Google stock - so go ahead and call me a shill for the industry.)