anyone know about Google changing to CPM from CPC?

[Helen]

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saw this on Mad.co.uk - anyone close to adwords know anything about this?

25 April 2005, mad.co.uk
By Jim Butcher
Google is looking to build on its domination of the search advertising market by moving into mainstream display advertising.
The move marks a departure from Google's usual cost-per-click (CPC) system, where advertisers pay when internet users click on their messages.
Instead, the new Google service will involve the more traditional advertising industry model of cost per mille (CPM), where advertisers pay a fee for every thousand people who see their ad.
The new test version is being introduced by Google this week and will give advertisers more control over where their ads are shown, how they pay for them and what they look like.
Analysts believe the move could attract more big-name advertisers that favour expensive, high-tech web ads promoting their brands, opening up a vast new avenue of opportunity for Google, which has in the past been criticised for developing interesting ideas that have no clear way to make money.
Signalling a deeper push into the branded advertising market, the move will match Google against companies such as DoubleClick, which also places display ads on other companies' web-sites in return for a fee.
"We see this as connecting with more of our advertisers' needs," said Tim Armstrong, vice president of marketing at Google, adding that CPM advertising was more suited to companies wishing to raised awareness for their products rather than prompt a user to click through to another site.
"Now our system takes things very literally," said Susan Wojcicki, Google's director for product management

[Mogga]

So how will we get paid for showing ads? Will we get a fee per 1000 ads shown on our sites?

[bazza99]

Believe that this is being launched as part of their new site-targetting option.

Presumably this will only apply to content match.

Not sure how this will work from an adsense point of view.

[chrisk999]

I got the impression this was more targeted at banner adverts, rather than text adverts?

i.e. generic banner adverts for branding have a very low CTR compared to well targeted text ads, so if Google doesn't want to lose money for showing them, they've got to make it CPM instead.

It seems to make sense not to ignore banner advertising - if they could rival the existing CPM networks they could add on a good deal more revenue pretty quickly.

[wibble99]

Google mention CPM advertising here:

http://services.google.com/ads_inquiry/sitetarget?hl=en

[wibble99]

And news about their banner advertising network plans:

http://news.com.com/Google+readies+b...3-5682599.html

[mibut]

Just had email from Google
Hello,

We have made many recent improvements to Google AdSense. Read on to find out more.
Increasing monetisation through new forms of advertising

As part of our goal to improve the monetisation of your sites, Google has introduced a number of new features for advertisers, which will directly impact you as an AdSense publisher.

We anticipate that these features will introduce new advertising budgets into the content network by giving advertisers additional ways to reach their objectives.

We are currently testing these new features with a select group of advertisers, and expect to make the features more widely available in the near future.

Site targeting: focusing on the audience

The keyword-targeted ads that you are used to seeing on your pages will now be joined by a new type of site-targeted advertisement. Site-targeted ads allow advertisers to select the specific sites they feel are most appropriate to their campaign, and to run their ads only on those sites.

We believe that advertisers will leverage both our traditional keyword-targeted advertising which runs across the entire AdSense network, and our new site-targeted advertising, bringing more ad revenue to publishers.

CPM bidding: a new way to generate revenue

With site-targeted advertising, advertisers set a maximum CPM bid - that is, the price they are willing to pay for every thousand impressions – and pay on a per-impression basis. This means that, unlike pay-per-click ads, you will earn revenue each time a CPM ad is displayed on your site.

For every eligible impression, both pay-per-impression ads and pay-per-click ads compete in the same auction. Our technology will automatically display the highest performing ads on your pages.

Expanded text ads: testing new formats

We are also running a test with text ads that expand to fill the entire ad unit, so that only a single ad will appear in that unit. At this time, this test will only apply to text ads in a site-targeted campaign and to ad formats banner-sized or larger. The expanded pay-per-impression text ad will have to beat out all of the competing ads before it can appear, so publishers can be assured that any expanded text ad is a highly competitive ad. These ads will be served to any text-enabled ad unit and will abide by your text ad colour settings.

More image ads

Because of these new features available for advertisers, the number of image ads in the Google advertising network will grow. To take advantage of these ads, and the increased earnings potential that they offer, we encourage you to review your image ads preference in your AdSense Account Settings page.

You can also choose your image ads preference on a format-by-format basis when generating your ad code. For publishers who want to fully leverage image ads, we now provide an image ads only selection.

Your image ad inventory will also include a small number of Flash ads from a test group of advertisers. These new ads will adhere to the 50KB size limit for image ads, and will be reviewed according to our content guidelines.

Finally, we have added the wide skyscraper (160x600) format to make a total of 5 ad formats supporting image ads. If you're opted in to image ads, be sure to use one of these formats so that we can send image ads to your pages.

Contact us

You can always contact an AdSense specialist with your questions or comments, using the contact form in the AdSense Support centre. We look forward to hearing from you.

Sincerely,

The Google AdSense Team

[SpendaPenny]

Not sure how they are gonna "vet" the cpm market,

I belive this will be open to even more "abuse" than the click technology, as the ads dont actually need to be clicked !!!

Will be interesting to see how they play this one !

[darrenw]

And does this mean that you are no longer allowed to look at your own sites?

[Zanox]

Certainly is an interesting one, i am sure with the level of abuse it can attract that it will make the job of the affiliate a lot tougher to keep their adsense account.

Worth watching though from an affiliate point of view.

[John Jupp]

My only concern is that the size of the google ads with flash will cause a huge drain of bandwidth for cpm earnings. I prefer cpc as at least the ads are smaller size in kb.

Got the email too. It might be worth including in time and if I put their cpm ads on my shopping portal when I revamp it I'll have hundreds of their ads listed and potentially quicker cpm earnings. If however they will manage cpm earnings on an individual column or ad basis then none of us will earn any money out of google...only if they add all impressions together from a particular site.

I'll have to look at their proposed T's&C's for cpm ads.

[Helen]

all really interesting...as i understand it the CPM option will be on targeted sites; i look forward to seeing how google looks at the audiences to allow companies to target certain groups. Putting my media hat on to purchase CPM media we usually need refined demographics not sure how google will get that for its current adsense partners!

helen x