Google Adwords - Long Tail Marketing in Action.
The Google Adwords program, which allows website owners to host content sensitive Google powered advertising, is a perfect example of the Long Tail effect at work. There are conservatively a million websites running the Google Adwords program. These websites together bring in a staggering amount of money to Google.
Based on online financial reports it is impossible to ferret out how much of Google's 1 billion dollars in ad sales comes from it's own search engine delivered advertising versus the adwords program. However, leading financial and search engine industry experts put it's breakdown to nearly 50/50. Gooogle also has rolled out graphical advertisements on external sites using its Adwords program. Something that it has yet to do on Google.com
The message is clear, companies that have been able to leverage the power of Long Tail Marketing have continued to survive and thrive throughout the dot bomb boom, and gain market share as their less savvy competitor's slipped away.
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6 Comments:
Hi Josh -- have you checked out John Battalle's "Sell Side Advertising?" It takes Adsense and Adwords to the next level. I think marketing in the long tail will involve a more customizeable approach than what Google currently affords. As publisher in the new world of disaggregated advertising, one has no control over which ads appear on their sites. Because those of us in the long tail are more engaged with our readers, Sell Side advertising enables us to have a say in what ads are displayed. Which I think is better than an algorithm.
Scott,
I haven't had a chance to check out Sell Side Advertising, but I'll make sure that I do. From a personal level, I'm not that concerned about making any revenue from my Google Adwords stream. In fact I've purposely put it about as far down the page and as integreated as possible. The reason why I'm running the ads has more to do with search engine optimization. I discovered, and wrote a piece within www.webpronews.com that by using Google's advertising program, websites get out of the "sandbox mode" and indexed much quicker.
I feel my blogs are like an obscure track from a no name band on rhapsody. I won't be quitting my day job any time soon, but with my site and the millions of others out there, Google is generating a significant amount of revenue.
"Trickle Up"... I like that (guess that comment was from your comments on my blog). Yes didn't mean to say you should change your Google placement ... but in thinking big picture it would be a good move by a major to incorporate sell side into their model. It would just take greater advantage of the long tail. IMHO. Look forward to reading more of your blog.
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