There’s big news on the Google Adwords and Google Adsense front today.
First, Google will start offering animated banner ads on its network of content partners (but not google.com itself). Previously you could only use static banners.
Second, these banners will be sold on a cost per impression basis, not cost per click. This is a huge departure from Google’s current model. But you may remember that Google’s original ad network was cost per impression. You used to bid how much you’d pay for each 1,000 impressions regardless of click-thru rate.
Third, advertisers will be able to choose which sites these banners will be shown on.
-Google is reaching out to larger companies that advertise for brand impact, not necessarily a click-thru or sale. The current model is incompatible with this because banners underperform text and get pushed out of the network; and it was a banner advertiser’s best interest to reduce click-thrus, which was against Google and the publisher’s interests.
-By allowing advertisers to choose which content sites their ads show up on, smaller publishers might be pushed out. What if this is extended to text ads? Will advertisers be able to say “only show my ads on bigsite.com, not smallsite.com?” This could have a major impact on small publishers using the Adsense program and domain name owners.
I’ll keep monitoring this…
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