Less than two weeks after Yahoo rolls out an invitation-only beta of its Publisher Network advertising platform, Google tweaks its own program, AdSense, creating a potential turf war.Less than two weeks after Yahoo Inc. rolled out an invitation-only beta of its Publisher Network advertising platform, Google Inc. has tweaked its own program, AdSense, creating a potential turf war that many Web publishers are eager to watch.
Google last week changed the way advertisers use its AdWords program, with a minimum bid for each keyword based on a quality scoring system.
Although advertisers have been complaining that their costs have increased because of changes in the AdWords programs, publishers are welcoming the switch and saying they're already noticing revenue changes.
"The Google AdSense team has always been laser-focused on publishers, but it seems they have taken it to another level," said Jason Calacanis, co-founder of Weblogs Inc. "I'm getting two to five times that number of e-mails from them with regard to new features."
In July, Calacanis estimated that use of the Google AdSense program would generate approximately $1 million for Weblogs. With the changes to the program, it is possible that the company's revenues will rise even higher, although Calacanis is taking a "wait and see" attitude.
"It seems that AdSense is paying more, but no one can say for sure if that is the new, 'one ad per unit instead of multiple ads' innovation or Google actually paying more," he said. "If they haven't upped the share to publishers already, though, I'm sure that's coming."
Yahoo, meanwhile, extended its Publisher Network in the United States to small and medium-sized Web sites, hoping to attract a larger slice of the publishing community by giving access to the company's content and offering a self-serve platform.
Although the program only has a few hundred publishers doing beta testing right now, many publishers welcome the official launch of Publisher Network, and Yahoo expects about 2,000 will join the program. Already, Yahoo is tweaking the program based on user feedback, which company spokesperson Kristen Wareham said is very positive.
"It's difficult to say right now what will be in the final version for sure, but we're focused on giving publishers more control," she said. "They're giving us great feedback about how to make that happen."
When the program is formally launched later this year, publishers will be able to run ads on alternating pages and choose which one works best, said Barry Schwartz, an editor at Search Engine Roundtable and a beta tester of Publisher Network.
There will be a definite benefit to publishers, he noted, through comparison alone. Also, some publishers that have violated their terms of service with Google will be able now to go with Yahoo, he added. "It's another outlet, but the main reason that publishers are so happy about Google and Yahoo vying for our attention is that we can test revenue," said Schwartz.
The turf battle could even become more heated when Microsoft Corp. joins in the fray, Calacanis noted.
"Two folks equal a battle, but three equals a marketplace," he said. "Publishers will benefit most by a competitive marketplace."
