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Google can extract as much money as they want from this equation, up to the limit of available capital for advertising. They just need to squeeze more from publishers and at the same time increase click costs. They have been doing both of these for several years.

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riku_iki 6 days ago | parent [-]

> They just need to squeeze more from publishers and at the same time increase click costs.

but publishers receive stable share of click cost (67%?), so they should be happy with this arrangement.

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stasomatic 6 days ago | parent | next [-]

That’s assuming a click happened. Premium pubs prefer guaranteed fixed CPMs no matter the amount of real clicks. I’ve worked for a few years at one of the major native ad companies, I’m very familiar with how the sausage is made.

	▲	riku_iki 6 days ago \| parent [-]
		In both scenarios publishers look good: 1. CPC: google has strong incentive to generate clicks, because that's where they get revenue: advertisers are charged per click. 2. CPM: publishers get their guaranteed CPM if that's their choice.

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6 days ago | parent | prev [-]

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