Google Beta-Testing Site-Targeted Ads
April 25, 2005
Darren Rowse at ProBlogger has an interesting post today about the new site-targeted ads that Google is currently beta-testing.
This will obviously be a nice thing for anyone with a high-quality content site that gets a lot of visitors. I can definitely see the possibility of bidding wars over some sites.
Darren also notes that site-targeted ads will be on a CPM basis, and not CPC. Site-targeted ads apparently will not be content-specific, either. So really, this is a throw-back to traditional CPM advertising.
How will this affect those with tightly focused niche content sites and a steady but not overwhelming stream of traffic? My feeling is that it really won't affect the regular Adsense/Adwords playing field very much. The reason? Advertising on specific high-traffic sites will cost advertisers more because there will be more competition to place ads on certain sites.
But perhaps the biggest thing to keep in mind is the whole CPM vs. CPC issue. CPC, unique to the Internet sphere, levels the advertising playing field for smaller businesses. At its core, the pay-per-click advertising model is results-based. Advertisers do not pay for the exposure of their ads to your visitors unless there's a click-through. This is quite a gem for the smaller business without the large advertising and marketing budgets of bigger firms.
In my opinion, most advertisers will likely continue to use keyword-targeted ads rather than site-targeted ads. Site-targeted ads will be relevant for products focused on branding strategies. But for the average Adsense advertiser, a keyword-targeted ad will provide the cost benefits of CPC and also take advantage of niche publishers' search optimization strategies to deliver more targeted visitors.
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