Rebecca Lieb is modding up this panel.
Jeremy Schomaker is up first with his crew, ShoeMoney.com. Shoe starting March 2003 with AdSense, at about $4 a day. He said if you design a site with contextual ads in mind, your kinda doomed to fail right away. When do you stop using AdSense? When you get to a certain point, you will have people waiting in line to give you direct ads. When to stop takes care of itself. After you complete the functionality of the site, that is when he starts adding ads, and about 1,000 unique visitors per day is a good point. Positives contextual ads, it is super easy to implement, they take out all the hassles of finding advertisers, dealing with them, etc. Negatives are that there is a "one click and gone effect." Only way to get paid is for them to leave. The user experience is not controlled by you, you do not directly control the ads that come up on those sites.
The Gray Area of Contextual Ads: There is good (white), there is bad (black) and there is a huge middle ground, with a lot of people making a lot of money (gray). He is one of those people in the middle ground. He feels those people are innovating the area. The innovative might be also named the "about to be banned" ATTB. Images near contextual ads is a really gray area. He said they are always updating their terms of service, so communication is really clear. He brings up a poll on the DP forums; will you use stop using image ads? The poll showed that there was a mix view on this. Some people are risk takers and some are not.
Contextual Arbitrage: What is it? If you buy from Microsoft to sell to YPN, that profit is the arbitrage. Why is it so profitable? Because the stats are right there for you, you know what your profit is right away. He shows examples of these type of pages.
He brings up the Bear Share, and when you install the Bear Share program. It asks you if you want to set your home page to Google Bear Share. You really dont have a choice, you kinda need to install it. Google.bearshare.com was a Google AdSense for Search site. There was no way to stop them for getting this off your home page on your site. 86% of the traffic on bearshare.com is either Google.bearshare and search.bearshare.com. He emailed Google about doing this on his site. Google said you can't do it due to TOS. So he thought to himself that he ruined bearshare.com's day. But bearshare.com is now using a different engine, Ask.com's PPC engine, which really pulls from Google's network.
Are people getting banned? Yes, tons of people, just check forums.
Who gets banned? It depends on who you are and how much your making. Etc. His dad got banned.
Tools for Contextual Ads: - Analytics is awesome (new vs. recurring visitors is a big stat) - CrazyEgg.com has a cool to see where people click on your site
Make sure you know your CPC, the cost per click. YPN shows your CPC, AdSense you need to do the math your self. He said always go for the higher CPC, not matter of bottom in earnings.
Tips for Success: - Test - Don't sell out - Analytics - Heatmaps - Communication - Rotate ads, test them
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