Will The Google AdSense Program Survive?
by Gauher Chaudhry


Almost everyone is now aware of the Google AdSense program that 
has taken the Internet by storm. The Google AdSense program 
lets webmasters place Google's paid sponsor listings on their 
web sites and collect a percent of the bid amount when someone 
clicks on one of the listings.

I have been reading many ezines that I receive and every 
publisher seems to be making a huge hoopla about Google's new 
program.

In my opinion, it is seriously overblown.  

Now, this article might make a few people unhappy who are 
counting on the Google AdSense program to finally be their 
"oasis of Internet riches."

But somebody has to be the devil's advocate. :)

Discussion boards, chat rooms and advertisers are buzzing about 
the Google AdSense program like it is the California Gold Rush 
all over again!

Do you know how many people made money during the California 
goldrush?

Not many.

The reason was quite simple. Thousands of people flocked to 
California in 1849 to claim their gold riches, but ended up with 
nothing.

There were a few people who made some money finding gold, but 
the real people who made a fortune were the ones who provided 
food, accommodation and laundry services to the thousands of 
people who flocked to California.

In fact, laundry services were so expensive that people had to 
ship their clothes to Hawaii to be washed for a cheaper price.

The people who will probably make a lot of money with the Google 
AdSense program are the ones who sell complimentary products or 
services.  

For example, don't be surprised if you soon see an ebook "How To 
Make $100,000 A Year With Google AdSense" which will probably be 
a flimsy report that tells you to create targeted web sites that 
attract top dollar paid listings from Google AdSense.

But guess what, hundreds of naive people will probably buy this 
ebook and many other products and services that will pop up that 
are related to the Google AdSense program.

I am currently using the Google AdSense program on a few of my 
web sites and it does bring in revenue each month, but I don't 
expect it to stay at the same level.

I'll tell you why I feel this way.

When the Internet first started, everyone was making a huge 
hoopla about how you could put banners on your web site and 
make money.

But what happened?

Internet surfers started becoming immune to banner 
advertisements and the average click-thru ratio on banners has 
now dropped below 0.5%. Many banner ad networks have slowly 
died and gone out of business.

As Google AdSense listings start to appear on thousands 
of web sites, Internet surfers will slowly become immune 
to these listings, which will result in lower click-thrus and 
revenues for webmasters.

Overture.com is planning on launching their "Content-Match" 
program which is similar to the Google AdSense program, so 
regardless of what you believe, Internet surfers will become 
immune to text listings.

Many people hail the Google AdSense program as a long-term 
advertising solution because its technology analyzes the web 
page and delivers *relevant* and *targeted* listings that will 
interest web site visitors.

But banner networks have been doing this for years without much 
luck, so why the big commotion if Google has text listings that 
are relevant to the content on your web pages?

This is nothing new.

Just as banner networks had to deal with false click-thrus, 
Google will have to somehow tackle the same problem. The 
Google AdSense program is a perfect environment for a fraud 
ring as is the case with many pay-per-click search engines 
that operate revenue sharing programs.

How do I know?

Because my company witnessed it on our very own pay-per-click 
search engine BulletBid.com. Basically what happens is that
organized groups of individuals sign up as affiliate partners 
and then they all take turns visiting each other's web sites and 
clicking on the paid listings.

This is something that is hard to track because the IP address 
of each click on the same listing is different. We managed to 
track the culprits because 1) We didn't have an overly huge 
amount of affiliates and 2) The software we use had built-in 
fraud detectors to alert us that something could be wrong.

But with the Google AdSense program, there will be tens of 
thousands of webmasters running paid listings on their web 
sites. It will be very difficult to track who is collaborating 
with who.

I have a feeling that Google's staff knows this and that is why 
they allow advertisers to opt-out of appearing on partner web 
sites.

But if Google cannot track down fraudulent clicks, this will 
result in paid advertisers having a lower sales conversion 
ratio from the traffic that Google sends them.

This will result in advertisers lowering their bids and honest 
webmasters who host the Google AdSense listings receiving lower 
revenue payments.

Given the factors mentioned above, webmasters might in future 
find it more profitable to go back to their old affiliate links.

So what is the answer to the question, "Will the Google AdSense 
program survive?" 

The answer is yes, but webmasters shouldn't expect to make as 
much money once the initial goldrush is over.


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Gauher Chaudhry is editor of the weekly Cool Cash Ezine.  
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