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863 points IdealeZahlen | 4 comments | | HN request time: 0.746s | source
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megaman821 ◴[] No.43718617[source]
I don't think this article explains it well. Google sells ad space on behalf of the publishers and also sells the ads on behalf of the advertisers. It also runs the auction that places the ads into the ad space. See this graphic https://images.app.goo.gl/ADx5xrAnWNicgoFu7. Parts of this can definately be broken up without destroying Google.
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coliveira ◴[] No.43718672[source]
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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1. riku_iki ◴[] No.43719060[source]
> 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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2. ◴[] No.43719301[source]
3. stasomatic ◴[] No.43719796[source]
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.
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4. riku_iki ◴[] No.43719859[source]
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.