19 February 2007

Google tests CPC site targeting

Google has announced a change in the way people can advertise on its network of partner sites. The Content Network gives advertisers an easy way to display their adverts on a huge range of sites across the internet, including big names such as Ask.com and HowStuffWorks.

The change applies to a method of advertising on the content network called site targeting; sites are usually analysed by Google to find the themes and content of the site, and adverts are targeted and displayed accordingly. The site targeting method allows users to pick the sites on which their adverts are displayed by hand.

In the past, advertisers using this method have been charged on a CPM (cost per thousand) basis - meaning they were charged per 1000 displays of their adverts. Google is now testing a new method for charging advertisers, using a CPC (cost per click) method. This means advertisers pay a fee each time their advert is clicked on, similar to the way that people are charged for their adverts on the Google search results pages.

The problem with the CPM model is that advertisers are just paying for people to see their adverts, not for the click which shows that users are interested in their product or service. For instance, if the site you're advertising on has a lot of returning visitors, you'd be paying for each time the same user sees your advert. However, that user may not click on your ad multiple times.

On the other hand, this may not necessarily be a bad thing. If an advertiser is interested in increasing brand awareness rather than generating direct business, a site targeted CPM campaign can be a very cost effective way to achieve this.

The main benefit of Google using CPC is increased flexibility for advertisers. Choosing to use a CPC campaign means that advertisers can ensure they're only paying for business generated by their adverts, which may give them more peace of mind when using a site targeted campaign.

As this project is still being tested, it remains to be seen whether a CPC site targeted campaign can produce better results than a well targeted CPM campaign - but the results from the test will certainly be something to look out for.

If you're a US-based Adwords advertiser, you simply need to fill in a form to register your interest to be part of the beta testing.

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