Tuesday, April 26, 2005

Google Adopts CPM For Content

In the coming weeks, Google will be rolling out a significant change to the content targeting side of its AdWords program. These changes do not affect "search" ads on Google and other search network partners.

The first major change: pricing is on a CPM (cost-per-thousand-impressions) basis, not cost per click.

The second major change: a clever device to allow advertisers to target specific sites. This is what we've been asking for since the day AdSense rolled out. Many of Google's critics adopted a sort of fatalistic attitude towards the prospects of improvement in the AdSense program, since this upgrade took so long to arrive.

The impact to us as publisher?
Quote from New York Times

‘Google will abandon rules that require advertisements to be directly relevant to the pages on which they appear; it will now place a motor oil ad on a wine site if the refiner outbids the cheesemonger.’

Quote from Jensense
‘Overall, this is a great move for Google to make and should pay off for publishers with solid quality content. However, the effect on publishers with less-than-stellar content could be significant, if advertisers begin monitoring their content conversion rates and begin excluding sites they feel are not up to par.’

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