19 June 2003 | Author: John Hughes

Google content ads spread their wings

Google's Adwords program has been expanded to allow most suitable websites to display Adwords on their site.

The new program, called Adsense, allows websites with as low as a few thousand page views a month to show content related advertising, thereby implement a whole new revenue stream.

But how will this affect the Adwords program itself?

Well, Google already supplies content based Adwords to a large number of websites (the original specification was that a partner site had to achieve over 20 million pageviews a month). It seems that Google is happy with the success this contextual system has achieved in building additional revenue. Now Google intends to expand this revenue to its fullest potential.

When Google bought the company Applied Semantics earlier this year, it acquired probably the World's leading contextual analysis AI system for web-based text, and thereby the technology to serve content-based Adwords successfully. Google handled content-based advertising slightly differently to its keyword-bid system that has been in place since the beginning of the Adwords concept. Users are not penalised currently for low-clickthrough rates on content based advertising, like they are on keyword-bid advertising.

What will the effect be?

Well, we have already noticed an increase in traffic through the content targeted ads served by Google. Personally, I believe that that is as much to do with improvements in the contextual AI as to the breadth of the ad-serving. However, I also expect the breadth of sites serving Adwords to have a positive effect on traffic through the content-based Adwords. At the same time I'm a little wary that if Google overstep the mark a little, Adwords might end up with the same reputation that banner advertising already has. Let's hope that Google do consider these issues carefully, and then the contextual advertising model will then be allowed to blossom.

Official Press Release:

GOOGLE EXPANDS ADVERTISING MONETIZATION PROGRAM FOR WEBSITES
Google AdSense Enables Sites to Maximize Revenue Potential While Enhancing User Experience

MOUNTAIN VIEW, Calif. - June 18, 2003 -- Google, developer of the award-winning Google search engine, today announced a new self-service option for Google AdSense, a program that enables website publishers
to serve ads precisely targeted to the specific content of their
individual web pages. With Google AdSense, publishers serve text- based Google AdWords ads on their site and Google pays them for
clicks on these ads -- users benefit from more relevant ads and
publishers can maximize the revenue potential of their websites. The
self-service option augments the existing content targeting services
for publishers announced by Google in March 2003, now making this
service available to a broader universe of high-quality websites.

Website publishers that already serve ads on their pages can use
Google AdSense to complement their existing advertising and reduce
unsold inventory. Additionally, publishers that do not currently
display online advertising can integrate Google's targeted ads with
minimal effort. Publishers apply online and once approved by Google
for participation in the program have instant access to Google's
network of search advertisers - comprising more than 100,000
advertisers, ranging from large global brands to small and local
businesses. This depth and breadth of advertisers provides
publishers with ads that are highly relevant to their content, even
if it is specialized.

"Google AdSense improves the overall web user experience by bringing relevant, unobtrusive, text ads to web pages rather than disruptive, unrelated ads such as pop-ups and animations," said Sergey Brin, co-founder and president of technology at Google. "By providing
website publishers with an effective way to monetize content pages on
their sites, Google AdSense strengthens the long-term business
viability of content creation on the web."

"Google has dramatically improved our ability to reach our readers
with very targeted advertisements," said Robert Hoskins, group
publisher, Broadband Wireless Exchange, Inc. (bbwexchange.com). "We
are now able to reap thousands of dollars in additional advertising
revenue each month that we probably would have missed without Google
AdSense."

"The ads served through Google AdSense are a service to our users - they're not flashy, obnoxious or intrusive," said Erin Martin, web producer, Infoplease.com. "We like giving our readers what they want - ads that are helpful. With Google AdSense, we immediately made twice
the money we had been making with any other type of advertising."

To apply online for the program, website publishers can visit www.google.com / adsense. Google's editorial team will review each publisher application to ensure that the site meets editorial guidelines. To activate the service, the publisher logs into their account and cuts and pastes a small piece of HTML into their web pages or ad server. Once the program is up and running, publishers can monitor ad performance through detailed online reports. In addition, Google's editorial team monitors each participating site in the
program on an ongoing basis. The program is currently available for
English language websites worldwide.

In addition to applying online with Google AdSense, website publishers with more than 20 million page views per month may be eligible for premium AdSense service, which includes dedicated account service. Selected website publishers enrolled for premium service include ABC.com, HowStuffWorks, Internet Broadcasting Systems, Inc., Lycos Europe, New York Post Online Edition, Reed Business Information, U.S.News & World Report and others.

About Google

Google's innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by
Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a
top web property in all major global markets. Google's targeted
advertising program, which is the largest and fastest growing in the
industry, provides businesses of all sizes with measurable results,
while enhancing the overall web experience for users. Google is
headquartered in Silicon Valley with offices throughout North
America, Europe, and Asia. For more information, visit www.google.com.

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