Google extends the Adsense program with new concepts
Google, which has built a huge business out of small ads related to what people are searching for on the Internet, is now entering the larger and more competitive market of advertising for things people do not know yet that they want to buy.
Starting today, Google will test changes to its advertising program that will give advertisers more control over where their ads are shown, how they pay for them and what they look like.
For Internet users, the most visible change will be an expanded use of ads with graphics and animation on many of the Web sites for which Google sells advertising, rather than the short text ads that have been Google's hallmark.
Contextual-advertising also slowly fades away; Google will give advertisers the ability to "overrule" the context filter:
Google said it was introducing the changes to give advertisers more flexibility.
"Now our system takes things very literally," said Susan Wojcicki, Google's director for product management. "If you are on a wine site, we show ads for wine. Now we will let you advertise your cheese on wine sites."
Google will abandon rules that require advertisements to be directly relevant to the pages on which they appear; it will now place a motor oil ad on a wine site if the refiner outbids the cheesemonger.
They also introduced cost per impression for the ads because some companies just want to create awareness of their brand at the market.
Fact is, for me, I stopped context advertising on Google a long time ago because conversion was so poor (personally I believe due to click fraud). CPM advertising may be a way to make context advertising "worth it" if the cost is low enough to account for low conversions.
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