I love Google. One reason, is that they offer a lot to the world at large. They understand the principles of hard work, and are willing to pay the price to get the return.
Recently they posted a great article about how exactly ad prices are set via auction. One thing I noticed is that they don't always give the highest bidder the best spot. Instead, they take into account both what ad is most relevant, and look at the bid amount of the ad.
If they were greedy, they could just ALWAYS put the most revenue generating ad in the best place, but instead, they try to give their customers (us, the Searcher's) the best information.
This is a classic example of win-win. By considering the fulfillment of their customers wants, and satisfying them. They are maximizing their revenue.
Are their areas of your business that you could do likewise? Customer concerns / wants / needs that you can satisfy, and make some additional revenue while you are at it?
Official Google Blog: How auctions set ad prices
Friday, May 16, 2008
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