Google’s Content Network to Offer CPC Pricing for Site Targeted Ads

As reported in MediaPost, next month, Google plans to allow marketers who currently buy display ads on a cost-per-thousand impression (CPM) basis via the “site targeting” program on the Google Content Network to start purchasing cost-per-click (CPC) ads as well.

Site-targeted ads are contextually-targeted ads displayed on sites participating in Google’s AdSense program and specifically chosen by the advertiser. I wrote about the complexity of Google’s Content Network in a two-part series. The particular complexity of CPM-based site targeted ads was controversial, as I described:

“For starters, site-targeted display advertising is no sure thing. There’s no guarantee your ad will be served because there’s no insertion order, virtually no minimum commitment, no special placements, and no makegoods if ads don’t appear. That’s because there’s no real front-end buy. The purchase only occurs in real time after your bid wins a live, constant auction (in which your display ads also compete against text ads). Then, your ad is served. Only upon each served ad impression do you accrue any obligation to Google.”

Google seems to be coming around to my logic: “CPC bidding has often been requested by advertisers who would like to utilize site targeting, but are not comfortable bidding on a CPM basis,” Google announced on its AdWords blog.

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