Posted November 21, 2005 10:53 am by with 1 comment

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JenSense reveals that Google is (finally) allowing AdWords advertisers to select different bids for contextual ads on the AdSense network.

What does this mean for advertisers and publishers?

On one hand, you might see advertisers finally deciding to run their advertising on the content network, since they can bid at different prices. If they decide a search click is more valuable than a content click, they can adjust their bidding accordingly when they start bidding. So this would inject ad inventory and earnings into the content network.

On the flip side, you might have advertisers who were always quite content to bid the same price across both content and search, who might now suddenly bargain basement their bids on the content network while leaving search bids at their current levels. So suddenly there is a loss of potential earnings revenue from that one advertiser, multiplied across the number of advertisers who chose this route.

You may also see advertisers realize that ads on AdSense are a bargain which could start another bidding-war, driving up Google’s revenue.

Via SEW.