- Joined
- Nov 22, 2009
- Messages
- 1,434
- Reaction score
- 208
I met with some interesting folks yesterday who are presently endeavouring to invest in an online business of some sort, inspired by a presentation from an "online media" outfit who employ some very old-world tactics, namely, reliance on CPC in just about the absolute.
Their ideas included the bulk registration of domains, and the placement of "just enough" content on it to drive traffic, so that "hopefully" someone will click on the ads.
I tried to explain to them a few reasons why this doesn't work anymore, to include...
- It's only logical (and has been proven to be the case in the past) that if the clicks from sites owned by the same entity are not converting, the advertiser will stop paying for them.
They wouldn't sign over a check for, say, $100,000 for advertising, get nothing, and buy more in hopes it will keep working. So why should the client of an ad network such as adsense?
- CPC ad revenues have dropped vastly in recent years. This is not a subjective statement. The numbers are doing the talking here.
- Ads on facebook are becoming more and more intrusive. And video ads on youtube are getting longer and longer. Isn't this pattern showing something?
Those were my primary points to them, favouring an argument that we had ought to build an actual content site, that PEOPLE will be looking for, not Google, and its perceived search algorithm.
Can you think of any other reasons as to why it is that relying on CPC-type advertising is not a sustainable thing?
Their ideas included the bulk registration of domains, and the placement of "just enough" content on it to drive traffic, so that "hopefully" someone will click on the ads.
I tried to explain to them a few reasons why this doesn't work anymore, to include...
- It's only logical (and has been proven to be the case in the past) that if the clicks from sites owned by the same entity are not converting, the advertiser will stop paying for them.
They wouldn't sign over a check for, say, $100,000 for advertising, get nothing, and buy more in hopes it will keep working. So why should the client of an ad network such as adsense?
- CPC ad revenues have dropped vastly in recent years. This is not a subjective statement. The numbers are doing the talking here.
- Ads on facebook are becoming more and more intrusive. And video ads on youtube are getting longer and longer. Isn't this pattern showing something?
Those were my primary points to them, favouring an argument that we had ought to build an actual content site, that PEOPLE will be looking for, not Google, and its perceived search algorithm.
Can you think of any other reasons as to why it is that relying on CPC-type advertising is not a sustainable thing?
