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April 25, 2005
Google's New Targeted CPM Ads
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Google is stepping beyond clicks in its quest to gain a greater share of advertising on the Internet. The company on Monday is announcing a new ad program where advertisers can target ads to specific sites in Google's ad network and pay based on the number of times the ads are shown, rather than on the number of clicks on a link. Google Inc. plans to roll out the new option, called site targeting, over the next few weeks to the thousands of advertisers in its AdWords program. A beta test has already begun with select advertisers, said Salar Kamangar, director of product management. |
The move marks a significant shift for Google, which along with Yahoo Inc. has helped to popularize the so-called pay-per-click advertising model online. In that model, advertisers bid in keywords that trigger sponsored links and pay when a consumer clicks on the links. Google, instead, now will offer ads sold in the more traditional CPM model, where advertisers pay based on every thousand impressions of an online ad. But to keep the ads relevant, Google plans to make the CPM ads compete for placement on a site with its click-based ads. As in pay-per-click ads, advertisers also must bid in a competitive auction for Google's CPM ads rather than being able to buy placement for a period of time. They will be able name a maximum CPM rate for placement on one of the thousands of Web sites that are part of Google's AdSense partner network, and the placement of ads will shift based on Google's relevancy formula, Kamangar said. The new ads will not run on Google's own Web sites. |
Posted by geekblue at April 25, 2005 1:38 PM
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