Google monopolising it’s own paid search facility?

December 6, 2006

Great post on the Central Desktop blog regarding Google’s amazing ability to appear top in the paid results for a number of keywords no matter how much other advertisers bid.

I quote: “Google holds the top advertisement (Adword) slot for the following key words:
intranet, spreadsheet, documents, calendar, word processor, email, video, instant messenger, blog, photo sharing, online groups, maps, start page, restaurants, dining, and books (somehow Amazon has managed to appear in the #1 ad slot for ‘books’).

For spreadsheet, blog and video, in addition to squatting the premium ad position, Google Products also dominate three of the first four search results.

In such cases, Google Product Links and Ads can account for up to 25% of your viewable screen resolution – 30-40% for lower screen resolutions – almost guarantying that users will click on a Google Product over any other search results, sponsored links or text ads.

What this tells me is if you are trying to advertise a product that is competitive to Google, then you’ll never be able to receive the Top Ad Position, no matter how much money you bid and spend.

They go on to surmise how much this is pushing up the CPC (cost per click) for other advertisers bidding on these terms and also mentions that Yahoo does not follow the same practice.

It’s a valid question, possibly slightly biased by the fact that Central Desktop are a competitor in the online office product world but it’s a very good post and worth a read!

Personally I don’t feel this is monopolisation, more a savvy move by Google (who wouldn’t take the opportunity to drive more business to yourself) but I can see this being blogged about for quite some time.

At the time of writing this Google is no longer appearing in paid results for some of these terms, but thought this worth of comment anyway…

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