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Internet economics, technology and issues

How only Google can pull off pay-to-perform ads

Bruce Schneier today compliments Google on trying out pay-to-perform ads as a means around click-fraud, but worries that this is risky because you become a partner with the advertiser. If their product doesn't sell, you don't make money.

And that's a reasonable fear for any small site accepting pay-to-perform ads. If the product isn't very good, you aren't going to get a cut of much. Many affiliate programs really perform poorly for the site, though a few rare ones do well.

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PayPal should partner with UPS and other shippers

You've seen me write before of a proposal I call addresscrow to promote privacy when items are shipped to you. Today I'll propose something more modest, with non-privacy applications.

I would like PayPal, and other payment systems (Visa/MC/Google Checkout) to partner with the shipping companies such as UPS that ship the products bought with these payment systems.

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EBay: Sniping good or bad or just a change of balance?

Ebayers are familiar with what is called bid "sniping." That's placing your one, real bid, just a few seconds before auction close. People sometimes do it manually, more often they use auto-bidding software which performs the function. If you know your true max value, it makes sense.

However, it generates a lot of controversy and anger. This is for two reasons. First, there are many people on eBay who like to play the auction as a game over time, bidding, being out bid and rebidding. They either don't want to enter a true-max bid, or can't figure out what that value really is. They are often outbid by a sniper, and feel very frustrated, because given the time they feel they would have bid higher and taken the auction.

This feeling is vastly strengthened by the way eBay treats bids. The actual buyer pays not the price they entered, but the price entered by the 2nd place bidder, plus an increment. This makes the 2nd place buyer think she lost the auction by just the increment, but in fact that's rarely likely to be true. But it still generates great frustration.

The only important question about bid sniping is, does it benefit the buyers who use it? If it lets them take an auction at a lower price, because a non-sniper doesn't get in the high bid they were actually willing to make, then indeed it benefits the buyer, and makes the seller (and interestingly, eBay, slightly less.)

There are many ways to write the rules of an auction. They all tend to benefit either the buyer or the seller by some factor. A few have benefits for both, and a few benefit only the auction house. Most are a mix. In most auction houses, like eBay, the auction house takes a cut of the sale, and so anything that makes sellers get higher prices makes more money on such auctions for the auction house.

Read on...

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Travel laptop for couples

We often travel as a couple, and of course both have the same e-mail and web addictions that all of you probably have. Indeed, these days if you don't get to your e-mail and other stuff for a long period, it becomes unmanageable when you return. For this reason, we bring at least one, and often two laptops on trips.

IMAP server should tell you your SMTP parameters

When you set up a mail client, you have to configure mail reading servers (either IMAP or POP) and also a mail sending server (SMTP). In the old days you could just configure one SMTP server, with no userid or password. Due to spam-blocking, roaming computers have it hard, and either must change SMTP servers as they roam, or use one that has some sort of authentication scheme that opens it up to you and not everybody.

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Web sites -- stop being clever about some structured data

A lot of the time, on web forms, you will see some sort of structured field, like an IP address, or credit card number, or account number, broken up into a series of field boxes. You see this is in program GUIs as well.

On the surface it makes sense. Never throw away structure information. If you're parsing a human name, it may be impossible to parse it as well from a plain string compared to a set of boxes for first, last and middle names.

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Sudden web traffic not so great with Adsense

As I've written before, Google's Adsense program is for many people bringing about the dream of having a profitable web publication. I have a link on the right of the blog for those who want to try it. I've been particularly impressed with the CPMs this blog earns, which can be as much as $15. The blog has about 1000 pageviews/day (I don't post every day) and doesn't make enough to be a big difference, but a not impossible 20-fold increase could provide a living wage for blogging.

Give us TVoIP, not IPTV

A buzzword in the cable/ilec world is IPTV, a plan to deliver TV over IP. Microsoft and several other companies have built IPTV offerings, to give phone and cable companies what they like to call a "triple play" (voice, video and data) and be the one-stop communications company.

Browsers: Time to have a default margin

In most browsers, the default style presents text adjecent to all sides of the browser window, with no margin. This is a throwback to early days of screen design, when screen real estate was considered so valuable that deliberately wasting it with whitespace was sacrilige.

Of course, in centuries of design on paper, nobody ever put text right up to the margins. Everybody knows it's ugly and not what the eye wants. Thus, when you see a web page using the default style, which I end up with myself out of laziness, people have a reaction to it as ugly.

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How web sites can do a much smarter 'pledge drive'

There is buzz about how Jason Kottke, of kottke.org, has abandoned his experiment of micropayment donations to support his full-time blogging. He pulled in $40,000 in the year, almost all of it during his 3 week pledge drive, but that's hardly enough. Now I think he should try adsense, but I doubt he hasn't heard that suggestion before.

However, PBS/NPR are able to get a large part of their budgets through pledge drives, so it's possible to make this happen. I think we should be able to do it better on the web.

Wanted: A google/yahoo/etc. ad optimizer

Yahoo is now entering the context-driven ad field to compete with Adsense, and that's good for publishers and web authors. I have had great luck with adsense, and it provides serious money for this blog and my other web sites, which is why I have the affiliate link on the right bar encouraging you to join adsense -- though I won't mind the affiliate fee as well, of course.

Experimenting with Yahoo Publisher for RSS

While I have been using Google ads on the blog for some time (and they do quite well), they don't yet do RSS ads outside of a more limited beta program. So I'm trying Yahoo's ads, also in beta but I'm on the list.

They just went live, and all that's showing right now is a generic ad, presumably until they spider the site and figure out what ads to run. Ideally it will be ads as relevant as Google Adsense does.

Competition between Google and Yahoo will be good for publishers. Just on basic click-rates, one will tend to do better than the other, presumably. If one is consistently doing not as well, they will lose all the partners, who will flock to the other. The only way to fix that will be to increase the percentage of the money they pay out, until they get to a real efficient market percentage they can't go above.

Read on for examination of the economics of RSS ads.

Deep bookmarks in the browser

In playing with a few firefox extensions that display things like my cellular minutes used, I realized they were really performing a limited part of something that could be really useful -- deep bookmarks which can go past login screens and other forms to go directly to a web page.

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On the two-tier internet

Of late there's been talk of ISPs somehow "charging" media-over-IP providers (such as Google video) for access to "their" pipes. This is hard to make sense of, since when I download a video from a site, I am doing it over my pipe, which I have bought from my ISP, subject to the contract that I have with it. Google is sending the data over their pipe, which they bought to connect to the central peering points and to my ISP. However, companies like BellSouth, afraid that voice and video will be delivered to their customers in competition with their own offerings, want to do something to stop it.

To get around rules about content neutrality on the network that ILEC based ISPs are subject to, they now propose this as a QOS issue. That there will be two tiers, one fast enough for premium video, and one not fast enough.

Today I've seen comments from Jeff Pulver and Ed Felten on possible consequences of such efforts. However, I think both directions miss something... (read on)

MMORPG for Seniors and Shut-ins

I was visiting a senior citizen today who rarely leaves her house due to lack of mobility. Like many her age, she is not connected to the net, nor interested in it. Which makes the following idea a challenge.

Could we design a really engaging game/online community for seniors? Especially those who have had to give up much of their old community because of infirmity? They don't want to slay monsters like in Evercrack or Warcraft. They won't build objects like in Second Life.

Adsense and the advertising/editorial wall

You are probably familiar with Google adsense, which is providing the ads you see on the right hand side of this page. Adsense code examines the text of pages, and tries to match Google adwords bids against it. The publisher of the page gets some undisclosed share of the Google revenue.

Interviewed about USENET on public radio "Marketplace"

I am told an interview I did a few months ago on USENET and elements of its history will air today on the American Public Media show "Marketplace." The audio can be played from the Marketplace web site in realplayer format. It airs on most NPR stations at times ranging from early afternoon to about 6:30pm.

Intermittent free wifi

I recently read the story of the coffee shop that's shutting down their free wifi on weekends because it mostly gets them moochers who, far worse than simply not buying anything, sit and stare at computers and don't talk to anybody. They found that when they shut down the free network, they not only got people to buy more coffee, the place was also more social.

Down with PoIP

Voice over IP, a field I've been working in, has been generating some recent excitement. And that's appropriate.

However a lot of the talk is about something I consider the wrong direction. I call it PoIP, for PSTN over IP or worse, POTS over IP. (POTS, in turn, stands for Plain old Telephone Service.)

Support public/private in 802.11 access points

Almost everybody has a WiFi (802.11) access point these days. Some leave them open by accident, some deliberately, some turn on encryption or other security. Being open can be nice to neighbours and wanderers, though it can also be abused, and if you have insecure machines on the local NAT, it's risky.

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