Maxim's blog
MSN is dropping several websites from their SEM program.
 Digg it  Bookmark with del.icio.us
Sun Apr 01, 2007 11:21 pm
MSN has let us know on Friday that they are closing several large customer accounts for their SEM program known as AdCenter.
The official reason for excluding such accounts as Business.com and eBay from AdCenter is lack of content on the websites that buy traffic from MSN search and content networks.
We asked MSN, why are they cutting off such a big customers? Don't they want all that revenue? The answer was an unexpected one: "we are a software company and do not care about advertising revenue".
One one hand they are right: they are a sixty billion dollar business and loosing thirty million from large advertising clients is no big deal. They appear to care about user experience too: they don't want advertisers to buy traffic to pages that "lack content".
But the real reason, I think, is very pragmatic: competition with Google. All major SEM programs, Google, Yahoo and MSN (or GYM), have exclusive clauses in the contract with advertisers: if you want to buy their traffic, you must not display ads of their competitors.
While large advertisers that MSN decided to drop may lose significant amount of traffic (and, hence, revenue), I wonder if other Yahoo and Google will follow.
The Trackback URL for this entry is:
This function is disabled
| Author |
Message |
| There are no replies for this entry. |
|
forums.supremistic.com Forum Index
-> Blogs
-> Maxim's blog
-> MSN is dropping several websites from their SEM program.
|
|
|
