Industry Veteran Rick Schwartz Rips into Google and Yahoo for Price Gouging

Public discussions are starting to happen about the current state of PPC advertising and why the CPC for most keywords has continued to rise for the advertiser yet at the same time payouts plummet for the publisher. Rick Schwartz is starting up a dialog at T.R.A.F.F.I.C. Miami this October.

Domainers are looked down upon as scum because the two giants have thrown the legitimate guys under the bus in lieu of targeted traffic. The end user pays $5.00 for a click, but we get 5 cents and we are supposed to believe that is an 80% cut? I think every domainer knows this is garbage and that it has to change. I believe that T.R.A.F.F.I.C. is going to start a conversation that Yahoo and Google cannot ignore. I have listened to their empty lip service for six years and now it is time for show and tell.

I believe this conversation is long overdue and publishers should unite to form a coalition of quality guideline enforcement (somehow). There is some merit to Mr. Schwartz’ argument. Then again, he paid $200K for flowers.mobi (and now he’s selling it), so one questions whether he is the best person to lead this movement. I say it’s better him than nobody.

Update: Flowers.mobi sold for $6,500, a net loss of $193,500. Whoops!

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