I was looking through the Home Depot website today, and I saw something that I think is a bit strange, and I wanted to see what you think about it: Google Adsense advertising blocks on HomeDepot.com.
I was shopping for a bathroom vanity at Home Depot, and I saw a link to PlazaGallery.com, which is a competing website/company. Why would Home Depot want to make a tiny fraction of the revenue for my click than they would if they would sell me a full vanity, sink and faucet?
I monetize some of my smaller website with Adsense, especially the sites that don’t have direct advertiser relationships and don’t offer products for sale. I like the flexibility of Adsense, and I appreciate the fact that I can make money on some of my sites without actually having to sell anything.
I’ve always been taught that it doesn’t make much sense to send potential customers to a competitor for a fraction of the revenue that you could make from a sale. For instance, if I was selling $100 sneakers with a 30% profit margin, it wouldn’t make sense to have Adsense where I could get paid $.50 for a click, while sending customers who want to buy from me right to my competitors who could make a lot more money and gain a new customer.
I understand that their site has millions of visits, and they probably have a significant revenue stream with Adsense monetization, but it strikes me as odd, when the Home Depot has such a huge selection of products.
What do you think?