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11.27.07

How will Googles latest adjustment to Adsense affect CTR?

Google has adjusted the clickable area in their Adsense ads, subsequently decreasing the total clickable area. Whereas in the past the whole ‘box ‘ – the white area – was clickable now only the headline of the ad or the URL which has instantly resulted in lower click through rates (CTR) for advertisers, and hence lost revenue for Google. With that being said one would wonder why Google would do such a thing. So why would Google do this? The easy answer is Google tends to be very dynamic in all things web, though simply realizing this does not ease the pinch some of us may be feeling in the pocket. Therefore, one can only say that it is more than likely better for the overall ad network in that is potentially raises true clicks and hence quality while reducing possibly wasted throughput. No matter what the reason, this demonstrates that all in the business must stay constantly on top of all avenues for a change it one can have great impact if it your only channel.