Google Restricts Clickable Area for Adsense Ads
Google has redefined the clickable areas of AdSense ads. Up until now, if a user clicked anywhere in the AdSense unit it was counted as a click, but from now on, the only clickable parts of an AdSense unit are the URL and the ad title. My first impression was that this would impact Google’s revenue, as they primarily focus on a CPC model, but as it turns out in a change they had implemented earlier, while click-through rates decreased, sales remained the same in most cases which implies that this change leads to less accidental clicks and more relevant results.
As the focus on ROI increases, the race is on to provide the most relevant customers. In the short run, Google’s revenues may decrease, but in the long run, it would allow them not only to get more advertisers but also chrage higher for the keywords. How much of this would they pass on to the publishers to compensate for the decrease in their revenue?
Filed under: Business