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Huge opportunity with Google coming?

by Chris Thompson
9 replies
  • SEO
    • |
I just read this post about Google implementing direct product ads in search results. For product owners like me, this looks like an interesting CPA opportunity. It kind of makes Google a massive affiliate for us, and they calculate "ad rank" by multiplying quality score x commission. So higher commission directly proportional to higher ad score (makes sense).

Check this out:
Google Tests Ad Unit That Would Heat Up Competition With Amazon.com (GOOG, AMZN)

What do you guys thing? How can we best prepare to make money from this? Assuming it comes out of beta, of course.
#coming #google #huge #opportunity
  • Profile picture of the author NakMuay
    The mere fact that Google is testing a cost-per-sale model with this is indicative of their confidence in driving conversions for advertisers on a whole. It's far too early to make any assumptions of the performance of a platform like this, but I see it as an immense opportunity for smaller retailers to figure out the Google Product Ads algorithm and to compete on more even grounds.

    I'm interested in seeing what these Product Ads will look like, where exactly they'll be placed, how they're getting ranked, and what offers are seeing the best conversions. Hopefully this does make it out to at least public beta, because I for one would love to get my hands on this for a test drive.
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  • Profile picture of the author Chris Thompson
    NakMuay - agreed. I'm thinking that it would be nice to see the inner workings of this. Interestingly, you provide data to Google about your product but you do NOT bid on keywords. They decide this for you. So your data to Google will be of immense importance.

    I also wonder if affiliates could use this system as a way to promote products with bonuses. Say an affiliate of mine knows he makes $20 per sale. He can offer Google $10 CPA to sell the product with a unique bonus, resulting in $10 profit per sale and no risk (because it's not PPC).

    I think there will be a lot of questions about how this integrates with existing networks such as Clickbank.
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    • Profile picture of the author Himore
      Surely this would be too easy... great if it did work like that though!

      Originally Posted by Chris Thompson View Post


      I also wonder if affiliates could use this system as a way to promote products with bonuses. Say an affiliate of mine knows he makes $20 per sale. He can offer Google $10 CPA to sell the product with a unique bonus, resulting in $10 profit per sale and no risk (because it's not PPC).
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      • Profile picture of the author MintSEO
        Originally Posted by Himore View Post

        Surely this would be too easy... great if it did work like that though!
        Judging by this my commission sales should look much healthier then?
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  • Profile picture of the author Lucid
    I'm a bit unclear from the article how this fits in with regular PPC. Probably will make more sense when I actually see this in action. But if how I THINK this will work, I agree with Chris that your data to Google will be of immense importance.
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  • Profile picture of the author Chris Thompson
    Himore,

    I think if it works the way it is described, it will be easy at first in some niches. But over time what will happen is everyone will be competing to basically earn Google as their affiliate. Google will be an affiliate in every niche, and Google will know what converts well and what converts like crap. So they will only pitch stuff that converts. Google becomes the biggest affiliate in the world.

    How to make money from this?

    1) be early
    2) make sure your stuff converts
    3) Pay a hefty commission
    4) Own Google stock
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  • Profile picture of the author Greg Jacobs
    Very good strategy to expand the monopoly.

    Gets you locked into Google Affiliate Network and accepting only Google Checkout and then Google Bribes you by doing your ads and conversions for you.
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  • Profile picture of the author GuruGazette
    odd... they tried something like this a couple of years ago.
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  • Profile picture of the author redfc
    If that change comes, it sure post danger for some. Its opportunities for those who can crack the code of the game. Should keep an eye on this development, I'm sure there is a catch. Early birds do have advantage.
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