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June 24, 2007
Ebay No Longer Mad at Google, Stops Punching Self in Head
Lovely. Ebay has decided already to go back to buying ads with Google. Wish I had taken the "under" on that bet. I knew it would turn around quickly, but not this quickly.
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Do you know if they are buying fewer ads (as claimed), how much less they are spending, or if that's just their face-saving statement?
A search for "thinkpad" returns no "looking for thinkpad on ebay" results on google, but does return one on yahoo, but not in the first positions: maybe they are spending more-wisely. Although "world peace" returns an ebay yahoo ad in pole position, no google ad. :)
The money google makes from click- and impression- fraud is the most under-reported tech/business story this half decade. Here's why:
- blogger/tech industry "complicity". Bloggers are an easy group to subvert and depend largely on the adsense ecosystem. The entire current boom is dependent on click-based advertising -- or getting bought by someone who makes money that way.
- terrified "old media" (who would presumably not prostitute themselves so, but are frightened to death). Old media did not serve us too well in the first boom, either.
- advertisers still experimenting with the system (see "world peace" above)
- adwords' lack of transparancy. I'm always charged more clicks than I see in my server logs, and it's difficult to analyze branding campaigns "bottom up".
- adsense is so easy to game! I won't go into the click-/impression- farms, but here's a low-tech example: I know someone who clicks on google ads rapidly/randomly because he owns some stock. He claims it's like a starbucks owner buying a latte there. As an advertiser, I'd have to disagree...









How about a value player that can realistically give you 2000% return (x20 folds) in 4 years, based on reasonable P/E of only 10, and the fact that palladium metal price doubled in past 2 years, and should double again in another two years.
http://stockology.blogspot.com/2007/06/swc-is-next-apple-20-folds-in-4-years.html
Do your own DD.