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Google Reinvents AdWords with Auctioned CPM Ads
By Matthew Hicks

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With its latest ad push, Google steps outside of search marketing and into competition with some of its Web-publisher partners for brand advertising dollars, analysts and marketers say.

SAN FRANCISCO—As online advertising executives gathered here this week for the AD:TECH conference, one company kept being mentioned—Google.

Google Inc. had gained attention because of its announcement earlier in the week that it was moving into impression-based online ads and letting advertisers target those ads to individual sites in the Google AdSense network.

Google's latest advertising direction points to its interest in broadening its advertiser base to attract more brand advertising and in competing more directly with traditional sellers of banner ads, analysts and marketers said.

Google's approach also puts an auction twist on so-called CPM (cost per 1,000) advertising that could worry some of its publisher partners who already sell banner ads.

"It has become clear that Google is a media company and makes a lot of money from advertising," said Gary Stein, a senior analyst at Jupiter Research, a division of Jupitermedia Corp. "This is about them building out their ad network, and it's not about search."

Until now, Google's advertiser program, called AdWords, focused exclusively on pricing sponsored links and image-based ads based on the number of times a user clicks on them.

Read the full story on eWEEK.com: Google Reinvents AdWords with Auctioned CPM Ads


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