Googles Clickable White Space Changes

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Googles Clickable White Space Changes...

By: Nathan Weinberg
2008-03-03

...Costing The Company Big Time. comScore is reporting that Googles ad quality initiatives are the reason the companys paid clicks rate is dropping.

TechCrunch notes that Googles decision last November to stop using the white space in its text ads as clickable area has resulted in a serious drop in paid clicks as well, especially for AdSense publishers.

In both cases, Google is reducing the number of ads that get run and the number that get clicked, all in the interest of sending more quality clicks advertisers way. Googles theory has always been that the higher the quality of clicks, the more money the advertiser has to spend on even more clicks, so if every click is more valuable than the competitions, Googles advertisers will be encouraged to spend even more money than they normally would.

In a growing marketplace with a ton of unused inventory, that theory could work, but Google isnt growing like it used to, and there arent a lot of places for advertisers to got that arent already being tried. At some point, you can only improve ad quality so much that you are eventually just removing ads, and leaving no place in the network to replace them.

Did Google tip past that point where ad quality can hurt the company as much as help it? That statistics seem to say so.

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About the Author:
Nathan Weinberg writes the popular InsideGoogle blog, offering the latest news and insights about Google and search engines.

Visit the InsideGoogle blog.


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