Monday, April 25, 2005

Google goes for cost per impression charging for new 'Site Targeting'

Google is moving fast these days - and working hard to protect its business model - by launching new ones. Now, it has announced a new tool which will allow advertisers to target particular external sites with their Google Adwords.

'Site Targeting' goes live to a few select customers today and will be charged on a 'cost per impression' basis. Advertisers will be able to select where they wish their ads to appear by selecting from a lengthy list - or going 'board' but specifying certain sites where the ads should not appear. This does not include Adwords itself - in other words Google search.

Why is google doing this? Why go back to an impression charge?

Possibly to head off criticism over the quality of some 'clicks' which come through the normal Adsense system. First, there was Smart Pricing which meant you paid less if the conversion rate - measured by Google's tracking on your site - was below the norm.

Then there was a lot of concern over what's termed 'click fraud' where competitors or publishers could put up the cost of your advertising by clicking many times. What better way to regulate this than to give the power of the advertising to the advertisers themselves.

Just as importantly is Google's aspiration to win over the Fortune 1000 advertisers who spend disproportionately on advertising - but not, it seems, with Google. Why not? Because they have brand values to protect. Don't we all!


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