Thursday, 15 February 2007

CPC Site Targeted AdWords Ads

Google has just announced it will soon be beta testing CPC site-targeted ads. Up until now, all site targeted ads have been on a CPM (cost per thousand) basis.

According to the announcement, "CPC bidding has often been requested by advertisers who would like to utilize site targeting, but are not comfortable bidding on a CPM basis."

I find that an interesting statement. My gut feeling is that, in most instances, CPC site-targeted ads will end up costing more than CPM ads. Furthermore, if advertisers are really uncomfortable with CPM ads and would prefer CPC ads, that implies to me that those advertisers are not expecting many clicks and feel they are, therefore, more likely to spend less on CPC ads than CPMs. In fact, this could possibly benefit advertisers who are not hoping for clicks but are merely wanting to be seen for brand awareness, or some other reason.

This change also indicates a change to the way Google AdSense will work in future. AdSense is on the flip-side of Site Targeted ads so we can only assume that, in future, AdSense publishers will be able to earn on a CPC basis for such ads rather than the current CPM-only basis.

Technorati Tags: ,