Google moves to “first-price” #AdSense auction potentially affecting PPC

If you park your domains, earning pay per click (PPC) revenue, some things might soon change but will it be for the best?

Google, the world’s biggest digital advertising provider, is switching its AdSense keyword bidding format to “first-price” from “second-price.”

What’s the damn difference, you might say.

Very simply put, until now Google let the second highest bidder determine the price of the top bid.

If a group of bidders spread out, the 2nd highest bid determined how higher the top bid would be as Google would add a predetermined “delta” to the 2nd bid. Now, anything goes: the highest bid determines the cost of the keyword to bid on.

In terms of PPC revenue via ads on e.g. parked domains, this change might have a positive outcome for some keywords that carry a lot of competition and less positive of an outcome for keywords where competition is low. Google expects the effects to be generally “neutral” as it aligns itself with other advertising networks.

In general, we’ll have to wait about 90 days after the changes take effect to determine how PPC affects domain name parking revenue. Stay tuned!

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