Google has decided to retire its referral ads.The reason behind it is that these ads have not worked well in the past and many publishers have complained about its efficiency.
Here is the official word from Google,
"We're constantly looking for ways to improve AdSense by developing and supporting features which drive the best monetization results for our publishers. Sometimes, this requires retiring existing features so we can focus our efforts on the ones that will be most effective in the long term. For this reason, we will be retiring the AdSense Referrals program during the last week of August."
They have advised all the publishers to remove the referral ad codes from their sites before the time limit as mentioned.
Possible Effects of this move:
1.Increase in Cost-Per-Click: The advertisers will now use their total money in Google Adwords, thus increasing the competition among each others.This may bring up the rise in the cost per click of both "Adsense for Content" ads as well as "Adsense for Search" ads.
2.There is a percentage of publishers who are earning well with this program.This move is a shock for them.A few sites, specially in business areas, were largely dependent on referral ads.
3.New affiliate program by Adsense: Google has launched a new affiliate program just after their decision to retire referral ads.
Official word from Google:
"Google Affiliate Network: As part of the integration of DoubleClick, the DoubleClick Performics Affiliate Network will now operate as the Google Affiliate Network for advertisers targeting users located in the United States. Similar to the AdSense Referrals program, the Google Affiliate Network enables publishers to apply for advertiser programs and get paid based on advertiser-defined actions instead of clicks or impressions. For further details, please visit: http://www.google.com/ads/affiliatenetwork/."
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