As soon as Google have enough data on how much affiliates are wlling to spend on keywords to still make a profit, then Google could easily do without affiliates spending on PPC and be the affiliate themselves.
This way they could make 100% of the commission for each product sold instead of the 50%+ they get of the affiliates commissions by charging for keywords.
When Google are this masive affiliate they could then demand more commisson from merchants.
Thats my theory anyway.. I said the exact same about 2 year ago.
Lee
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