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Tuesday, April 26, 2005

New Advertising Options on Google AdWords

Google AdWords to provide Site-Targeting and CPM Pricing

Google plans to start Site Targeting, and CPM bidding in the coming weeks on Google AdWords.

Site targeting

Site targeting will allow advertisers to select specific sites on which they can show their ads.
For example: If I'm selling Hotel Rooms in LA, I can target specific travel, tourism, hotels, hospitality, vacation, business, and related Web sites and set a CPM (cost per 1000 impressions) bid to show my ads.

CPM Pricing
Advertisers will pay-per-1000-impressions of their ads on a specific web site

- For AdWords Advertisers
They will have the option of setting an amount for 1000 impressions.
For example: I want to sell NYC Hotels. I'll set a CPM limit of $500 (50 cents per impression) and pay for every impression (irrespective of a clickthrough) on a specific Web site.

- For AdSense Publishers (Web site owners like you and me):
They will earn each time a CPM ad is shown on their web page.

Google AdWords CPM pricing is available only with site-targeted ads.
The minimum allowable bid is $2 per 1000 impressions.

- Difference between CPM and CPC

# CPM: Cost-per-1000-impressions
An impression is when an ad is shown on a Web page, irrespective of whether it is clicked or not. The advertiser pays for showing an ad on the Web page. It may or may not be clicked. Everytime an ad is shown on a chosen/specific site, the advertiser pays.

# CPC: Cost-per-Click
The advertiser pays only when someone clicks on the ad shown on the Web page.

Expanded Text Ads and more image ads

- A new ad format that expands to fill the entire text ad unit. Only one ad will appear in the entire box.
- A special section that allows publishers to choose only image ads to show on their web site.

Related Links

Read Site Targeting FAQs on Google AdWords. Here is a screenshot of selecting specific sites for showing a Site-Targeted ad. Read more about Google's Site-Targeted advertising service.

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