Some thoughts about image and text ads
Wednesday, January 23rd, 2008Lately, I’ve been thinking about whether mixing text and image ads is really profitable. The case that most advertising companies (like Google adsense, adbrite and lots of others) make is that allowing image ads in the same ad unit as text ads is usually better because they compete in price with text ads. But, my understanding is that image ads will only show if they beat the highest text ad price. I tried to analyze and see whether the final profit will be larger in case of mixed ads or not and I found conditions for image ads to make more money if allowed to compete against text ads in the same ad unit.
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