Google Adds Sense to AdWords

By Brice Dunwoodie | Published Apr 25, 2005

Google's ramping-up AdWords features, adding website targeting, new animated ad formats, and CPM (cost per 1000 impression) purchasing options. These features are typical of larger advertising networks and something that Google has been under pressure to develop or allow. The changes are a clear signal that Google is targeting the larger “brand advertisers” and moving into a broader field of competition.

Google's AdWords program is used to populate both the search results ads one finds in the right-hand column and to populate Google's network of publishers (like CMSWire).

Targeting Sites
Ad buyers will now be able to set specific site URLs for their ads or will be able to search for and select specific site based upon keyword criteria.

Animated Image Ads
Taking the next step with their recently introduced image ad formats, Google will now allow animated images. This format will still be restricted to network ads. Search results will only display the text ads on a CPC basis.

Adding CPM Payments
The current AdWords payment model is CPC, or Cost-per-Click. Advertisers competitively bid for positions in search results. With each bid applying to a set of keywords or a full campaign. CPM pricing allows advertisers to bid on blocks of impressions, with prices ranging from a few cents per 1000 impressions to over $20 per 1000. Typical large publishers are selling in the $3-7 CPM range, with niche sites commanding in the $10-20 range.

Google's new CPM model will not be applied to search results ads. It will only work in the “network” and will compete directly against their traditional CPC ad buyers.

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