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Article Title:
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Prosper with Virtual Real Estate and Digital Assets - Part 2
Article Description:
====================
With close to $4 billion being generated in ads posted on
publisher's websites, Google's Adsense program is more than
just a cottage industry.
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1223 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2006-10-03 13:00:00
Written By: Kamau Austin
Copyright: 2006, All Rights Reserved
Contact Email: mailto:kamau@searchengineplan.com
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Prosper with Virtual Real Estate and Digital Assets - Part 2
Copyright (c) 2006 DBA AdPro Media Sales, All Rights Reserved
Written by: Kamau Austin
Search Engine Plan
http://www.SearchEnginePlan.com
In the first article part of this article, we described the
burgeoning virtual real estate market (VRE). We explained that
this industry was spring-boarded by Google's business strategy
to allow website owners (resellers) to get a cut of the
commissions from pay-per-click (PPC) ads displayed on their
sites. This program is known as Google Adsense(tm). I also
alluded to the fact that Google generates almost 40%-50% of its
$7.5 billion ad revenues from the Adsense(tm) program. We quoted
from Business 2.0 magazine that Adsense(tm) is projected to do
about $4 billion in revenue in 2006.
With close to $4 billion being generated in ads posted on
publisher's websites, Google's Adsense program is more than
just a cottage industry. In fact, it is probably the first true
sales channel in which Internet advertising will see its share of
the $175 billion ad industry traditionally composed of
television, radio, cable, and print advertising.
Despite its potential to further its profit, at least on the
surface, Google seems to have ambiguous feelings about the rapid
growth of VRE sites. In its canned corporate responses on this
topic, Google forbids creating sites just to make money with
Adsense(tm) revenue.
The Dueling Souls of Google
Borrowing a social construct from W.E.B. DuBois (the first
African-American to earn a PhD from Harvard), Google's corporate
culture seems to have two dueling souls. This duality became
especially apparent after the IPO went public.
On one hand, Google is the "do no harm" company that wants the
web to be an innovative place to facilitate the research,
organization, communication, and retrieval of information. In
this, the company is one of the Internet's and world's most
respected and almost deified brands. Its fan base is often
intensely, almost rabidly loyal.
On the other hand, Google is the iconic business powerhouse that
dares to shape the world to its image and will. Google is full of
arrogant hubris when it comes to issues of privacy, copyright,
and business issues. Many feel Google is becoming the next
Microsoft. In my opinion, Google is far more of a potentially
intrusive business concern than Microsoft.
For example, the New York Times reported that the US and other
national governments throughout the world had to seek relief from
Google Earth showing aerial photographs of their capitals. They
feared terrorists could use these readily accessibly photos in
their plans.
In addition, organizations of publishers and writers are
currently involved in disputes with Google over their scanning
efforts of books and other copyrighted information. Google is
challenging their rights to scan certain works under fair use
legal loopholes. But more to our immediate concerns, Google is
becoming a challenge to web marketers and even their core
advertisers by attacking pop-up ads with its toolbar and by
restricting advertisers' use of such pop-ups.
Even one session of pop-ups that used a cookie to regulate them
was a no-no for Google. Any net marketer knows that pop-ups,
used in a responsible way, are the most effective way to acquire
new subscribers. Although many people were abusing the pop-up
ads, there were many advertisers who used them only once per
session. However, Google and its supporters argued that long-term
site usability would benefit from killing pop-ups ads. With no
one to advocate for pop-up ads but web marketers, the general net
objections are muted. I don't like TV commercials either, but I
know they are the price I pay for free or cheap content
delivery.
In the past year, Google has made SEO, blogging, and RSS
visibility in its search engine more difficult. It is really
cutting down on duplicate content and has strengthened a
time-based delay filter commonly known as the dreaded "Google
Sandbox"-designed to halt the get-rich-quick mentality of many
Adsense(tm) entrepreneurs. For example, if you start a new site,
it will usually take you six months to a year to get a decent
ranking on Google.
Finally, Google added insult to injury with the latest
modification to Adwords criteria. This latest round of
restrictions cut to the core of some of the most profitable
practices of web marketers. In a round-about way, Google is
attempting to marginalize the squeeze page, the sales page, and
Adsense Arbitrage sites. These sites are effective ways to
generate site revenue, increase e-mail lists, and get visitor
conversion.
The squeeze page is a page where the sole focus is to get a site
visitor to opt-in to an e-mail list before they can obtain
information. Google doesn't like this type of site because it
makes their search engine less user-friendly and relevant.
The sales page's, or mini-site's, primary focus is to sell a
product (usually an info product) with the secondary focus of
getting people to sign up for an e-mail list. Google doesn't
care for these sites because they offer little useful information
to searchers and primarily exist to sell products.
Adsense(tm) Arbitrage sites bid on low-cost search terms to draw
traffic to their sites and show more expensive ads there in the
hopes site users will click on those ads. In financial markets,
arbitrage is the practice of buying undervalued or under-priced
stock or assets and reselling them for a simultaneous profit in
other markets. Google doesn't like this practice because it
encourages the development of low quality magnet sites that draw
traffic but offer little, if any, useful content. Why would you
create useful content if you only want people to click on ads?
Google's resistance to these sales and money-making tactics
raises the question whether VRE, info-product, and affiliate
sites really have a future for new net marketers and website
business owners. But Google isn't the only player to consider in
the lucrative VRE market.
Despite the YPN network's late arrival to the contextual ad
potential of the online real estate of millions of partner
reseller or affiliate sites, it is making up significant ground.
John Reese rumored that from his own testing and from others in
his circles, YPN pays a better percentage than Google. Since both
these companies cloak their payment policies and refuse full
disclosure, it is hard to verify these facts. However, it is
something you should test on your own pages.
Although an Internet business can be started cheaply, it is very
time consuming to build and develop your site into something
profitable. This is especially true given Google's tough filters
and algorithms. Despite a lot of Internet hype to the contrary,
most people won't run a business on the Internet that makes a
fortune overnight.
Since Google is such a schizophrenic business partner and YPN is
still such a newbie in the VRE space, is the ad reseller path
worth going down for the average website owner? Sure, people with
long-standing websites might make a fortune with VRE sites-like
Joel Comm. But what about the average new website owner, can they
ever make significant income doing VRE sites? As I illustrated,
building profitable VRE sites will not be easy. Especially given
the major search engine's vigilance in protecting their most
prized real estate-the first three pages of the search engine
result pages (SERPs). Google and other search engines are
increasingly viewing VRE sites as a threat to the integrity of
their search results. We will explore these and other critical
questions on our journey to find solutions to build profitable
VRE sites and digital assets.
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Kamau Austin is a stay-at-home dad and Searchpreneur(c).
He is the author of �Always On Top � How to Get Your Website
on Top of the Search Engines Every Time!� See his book at:
http://www.AlwaysOnToptheBook.com. He is also a nationally
recognized writer who has been featured on the American Urban
Radio Network (AURN) and XM Satellite Radio. He has also been
featured in both numerous community newspapers and national
magazines such as Black Enterprise and Fortune Magazine's Small
Business. Find out more about Virtual Real Estate with Blogs,
RSS, and search engines at http://www.SearchEnginePlan.com
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