Where Google Ads Will Go Next - Let's Talk
Look for display ads sold by impression to make their way into all those free services Google has been rolling out.
In its quarterly conference call yesterday, there were hints that sponsored listings and AdWords might be leaving money on the table.
As BuyGoogle noted, no one is paying much attention to an interesting piece of information. In the Q&A, Anthony Noto of Goldman Sachs asked about unspent ad budgets. According to Noto, there might be as much as $5 billion that advertisers had put into the system to pay for clicks that never came.
Jonathan Rosenberg, Google’s senior vice president of product management, first said that advertisers typically put in more money than they intended to spend, to ensure their campaigns always ran. Then, he admitted that ads might not be performing as well as they could.
“Certainly, one is to expand the scope of the network and the reach of our sites. But probably the most significant opportunity is just improving the statistical algorithms associated with how we target ads,” he said.
As Forbes.com reported in March, the click-through rate for sponsored listings (as opposed to AdWords) on Google.com in the U.S. and international versions, declined to 13 percent in January from 14 percent in the previous month. From December to January, the proportion of searches results that included sponsored listings on Google dropped from 54 percent to 53 percent.
Now, the search goliath has set its sights on display ads, also known as brand advertising because they don’t necessarily invite users to click. Google is prepared to put display ads, sold on a CPM basis, on its non-search properties. Rosenberg said it doesn’t make sense to mix brand/display and pay-per-click ads on the same page, because search ads already work so well — and can command a higher price.
“I think there are lots of opportunities, particularly outside Search, where some of the branded efforts might make some sense, and we would certainly be open to looking at branding efforts in some of those areas,” he said.
Larry Page added, “But we have many, many other properties now, including Video and Orkut and e-mail and many other types of things, too, that would we would be open to.” Ad-supported Wi-Fi, such as the partnership with Earthlink proposed for San Francisco, would be tremendous for the business, he said.
In its quarterly conference call yesterday, there were hints that sponsored listings and AdWords might be leaving money on the table.
As BuyGoogle noted, no one is paying much attention to an interesting piece of information. In the Q&A, Anthony Noto of Goldman Sachs asked about unspent ad budgets. According to Noto, there might be as much as $5 billion that advertisers had put into the system to pay for clicks that never came.
Jonathan Rosenberg, Google’s senior vice president of product management, first said that advertisers typically put in more money than they intended to spend, to ensure their campaigns always ran. Then, he admitted that ads might not be performing as well as they could.
“Certainly, one is to expand the scope of the network and the reach of our sites. But probably the most significant opportunity is just improving the statistical algorithms associated with how we target ads,” he said.
As Forbes.com reported in March, the click-through rate for sponsored listings (as opposed to AdWords) on Google.com in the U.S. and international versions, declined to 13 percent in January from 14 percent in the previous month. From December to January, the proportion of searches results that included sponsored listings on Google dropped from 54 percent to 53 percent.
Now, the search goliath has set its sights on display ads, also known as brand advertising because they don’t necessarily invite users to click. Google is prepared to put display ads, sold on a CPM basis, on its non-search properties. Rosenberg said it doesn’t make sense to mix brand/display and pay-per-click ads on the same page, because search ads already work so well — and can command a higher price.
“I think there are lots of opportunities, particularly outside Search, where some of the branded efforts might make some sense, and we would certainly be open to looking at branding efforts in some of those areas,” he said.
Larry Page added, “But we have many, many other properties now, including Video and Orkut and e-mail and many other types of things, too, that would we would be open to.” Ad-supported Wi-Fi, such as the partnership with Earthlink proposed for San Francisco, would be tremendous for the business, he said.
Comments
Post a Comment