Searching Inside the Black Box

In the New York Times, a little tiny insight into the ad revenue diagnosis group from Google. Apparently, if you have good ads you pay less for higher placement. This is a bit like Barry Nalebuff’s old suggestion that TV ads should have ratings too because if they are watched, it is more likely others in the break will be watched.

One thought on “Searching Inside the Black Box”

  1. It’s great because it keeeps the spammers at bay. With systems like this Google stays on top of the game. Always tries to give searchers the best experience possible.

    And on the other end, for advertisers with Ads on sites like these, it tracks the CTR, and the time that the visitor spends on the new site, to also decide how much it will cost the advertisers. That’s called “Smart Pricing” and when it happens to a website owner your revenue drops more than 90%… it hurts.


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