Comments

  1. Good post Vinny, and I’m very much in agreement with your description of the situation. In terms of whether it’s (1), (2) or (3), I have to say it’ll be some of each. One point of distinction, though – my understanding is that this is *not* something Google is pushing but is rather being led by AOL who wants to (and has the rights to) sell their traffic directly for its higher ROI value and, frankly, because they have the rights to in their 2005 agreement with Google.

    Another point of distinction – as far as I understand, AOL does not have the rights to sell their traffic directly to anything other than a list of 2000 top advertisers as determined by an independent 3rd party.

    Google CPC’s will not be impacted much, if at all, in the short term, advertiser adoption (even among those 2000) will happen over a period of 3-9 months because of work loads, lack of ROI understanding, and AOL’s newness to search ad sales – and IMO because of the AOL/Google deal structure not making it easy to launch a la Site Targeting or Content bidding.

    Markets want to be efficient, and this is AOL being sick of seeing their CPC’s diluted by G’s lower-quality [and IMO non-search] search distribution partners. Good advertisers who adopt AOL directly will be able to profitably spend more overall in search, Google will see a little bit less spend overall, and perhaps most importantly, many of those 2000 advertisers will opt out of G’s search network once AOL’s in place – at least until/unless G allows Search Network-specific bidding.

  2. Good post Vinny, and I’m very much in agreement with your description of the situation. In terms of whether it’s (1), (2) or (3), I have to say it’ll be some of each. One point of distinction, though – my understanding is that this is *not* something Google is pushing but is rather being led by AOL who wants to (and has the rights to) sell their traffic directly for its higher ROI value and, frankly, because they have the rights to in their 2005 agreement with Google.

    Another point of distinction – as far as I understand, AOL does not have the rights to sell their traffic directly to anything other than a list of 2000 top advertisers as determined by an independent 3rd party.

    Google CPC’s will not be impacted much, if at all, in the short term, advertiser adoption (even among those 2000) will happen over a period of 3-9 months because of work loads, lack of ROI understanding, and AOL’s newness to search ad sales – and IMO because of the AOL/Google deal structure not making it easy to launch a la Site Targeting or Content bidding.

    Markets want to be efficient, and this is AOL being sick of seeing their CPC’s diluted by G’s lower-quality [and IMO non-search] search distribution partners. Good advertisers who adopt AOL directly will be able to profitably spend more overall in search, Google will see a little bit less spend overall, and perhaps most importantly, many of those 2000 advertisers will opt out of G’s search network once AOL’s in place – at least until/unless G allows Search Network-specific bidding.

  3. Andre says:

    Hi Vinny,

    Now I remember why I enjoyed following your blog so much… Somehow I dropped the Vinny-feed after I switched to Google Reader.

    Love the analytic thinking, simple explanations and conclusive round-up.

  4. Andre says:

    Hi Vinny,

    Now I remember why I enjoyed following your blog so much… Somehow I dropped the Vinny-feed after I switched to Google Reader.

    Love the analytic thinking, simple explanations and conclusive round-up.

  5. [...] Lingham has a great blog post about the overall impact that the Adwords for AOL is going to have: For the record, our logs [...]

  6. Thanks guys!

    Two other posts of interest relating to this topic, which would add some additional strategic background logic (in my opinion, anyway!):

    (MSN/Yahoo/Google)

    http://vinnylingham.wpengine.com/2006/05/the-clash-of-the-titans-a-fresh-perspective.html

    (Return on Effort)

    http://vinnylingham.wpengine.com/2007/03/return-on-effort-with-ppc-campaigns.html

  7. Thanks guys!

    Two other posts of interest relating to this topic, which would add some additional strategic background logic (in my opinion, anyway!):

    (MSN/Yahoo/Google)

    http://vinnylingham.wpengine.com/2006/05/the-clash-o

    (Return on Effort)

    http://vinnylingham.wpengine.com/2007/03/return-on-e

  8. coRank says:

    Vinny Lingham’s Blog » AOL Only Adwords – Marketplace & Revenue Impact…

    AOL is receiving their own version of Google Adwords – possibly lower the CPC of Google?…

  9. coRank says:

    Vinny Lingham’s Blog » AOL Only Adwords – Marketplace & Revenue Impact…

    AOL is receiving their own version of Google Adwords – possibly lower the CPC of Google?…

  10. Worth noting… AOL’s white label program is only available to AOL’s 1,000 biggest advertisers. One of many little clauses in their renewal deal they renegotiated last year.

  11. Worth noting… AOL’s white label program is only available to AOL’s 1,000 biggest advertisers. One of many little clauses in their renewal deal they renegotiated last year.

  12. Cat Seda says:

    More work but more control. So overall, this is good news for PPC advertisers. Thanks, Vinny, for including examples and possible conclusions. It’ll be interesting to see what happens…

  13. Cat Seda says:

    More work but more control. So overall, this is good news for PPC advertisers. Thanks, Vinny, for including examples and possible conclusions. It’ll be interesting to see what happens…

  14. [...] a white-label PPC marketing platform based on the backend of Adwords. Vinny Lingham has a detailed analysis about how the deal will affect both Google and PPC [...]

  15. Linda Garcia says:

    Does anyone know if and when AOL’s white label program will be available to smaller advertisers?

  16. Linda Garcia says:

    Does anyone know if and when AOL’s white label program will be available to smaller advertisers?

  17. Searchquant says:

    Linda,

    I don’t think it ever will be. AOL’s deal with Google gives it the right to sell to 1000-2000 top advertisers (as defined by a 3rd party I believe), and no one else. So either you’re on the list or you’re not.

  18. Searchquant says:

    Linda,

    I don’t think it ever will be. AOL’s deal with Google gives it the right to sell to 1000-2000 top advertisers (as defined by a 3rd party I believe), and no one else. So either you’re on the list or you’re not.

  19. Shon says:

    I dont think AOL gets enough targeted traffic probaly like 70% off people uses google..

  20. Adwords says:

    AOL is nothing.
    They dont drive that much Traffic.

  21. alison says:

    Quite interesting topic covered here about AOL. Thanks for sharing valuable information and I will be waiting for new updates.

  22. club penguin says:

    I'm very much in agreement with your description of the situation. In terms of whether it's (1), (2) or (3), I have to say it'll be some of each. One point of distinction, though – my understanding is that this is *not* something Google is pushing but is rather being led by AOL who wants to (and has the rights to) sell their traffic directly for its higher ROI value and, frankly, because they have the rights to in their 2005 agreement with Google.

  23. I kind of have to say I like the idea – normal publishers can't even get away with that, why should aol? I mean – just because they're a bigger company doesn't mean they should be allowed to trick their users into clicking ads. That hurts everyone all around…

  24. Wireless says:

    Google was better than AOL, everyone know that

  25. Jose says:

    AOL cant trouble Google and we all know that…

  26. guccis says:

    Thanks guys! Two other posts of interest relating to this topic, which would add some additional strategic background logic (in my opinion, anyway!):

  27. hayden says:

    Put the right person in charge of your
    ad program
    ..which is very important..

  28. AOL cant trouble Google and we all know that…

  29. Quite interesting topic covered here about AOL. Thanks for sharing valuable information and I will be waiting for new updates.

  30. Blog Tips says:

    thank you for sharing

  31. I don´t think that AOL PPC will get a good impact at the search market.
    Nice post!

  32. IR35 says:

    Time proved AOL to be a poor Google competitor in the paid search battlefield. Does anyone still actually use AOL anymore?

Back to top
mobile desktop