Posts tagged AdSense
What is the future of display advertising?
Sep 2nd
Google’s director of product management Jonathan Bellack looks at the tech giant’s efforts to help online publishers generate more advertising revenue without being intimidated by the pace of change in the industry.
“For millions of online publishers—from the smallest blogger to the largest entertainment, news, e-commerce and information sites—online advertising revenue is vital. When publishers can maximize their returns, everyone benefits from more vibrant online content and websites,” says Bellack.
But the pace of change in the industry can be intimidating—how can a publisher keep up with what’s new, let alone grow their business?
Google believes that the new technology it is currently developing to make display advertising work better will help to grow the display advertising pie for all publishers, by orders of magnitude.
Bellack says, “We shouldn’t be asking how publishers can eke another 5 or 10% out of display advertising in the next few years. We should be looking at how the industry can double or triple in size.”
Google has three core ad products for publishers: AdSense, DoubleClick for Publishers and DoubleClick Ad Exchange.
But what are the key principles guiding Google’s future product innovations for increasing online ad revenues for publishers? Here’s 5 points of explanation from the Google blog.
1. Making life more efficient
For most large publishers, directly sold ads (ads sold by their own sales force) comprise the vast majority of their ad revenues. But today, selling and managing these ads is frustrating, expensive and often involves tedious manual processes.
Imagine a TV network that receives TV commercials in 100 different formats, languages, lengths and video dimensions, and then has to manually convert, translate and edit them all, then manually count the number of TV sets on which the ad appeared before sending a bill.
Things like new standards for video ad serving and systems that connect buyers and sellers are helping publishers support the most engaging and creative ads across their sites. But there are quantum leaps to come in this area, for small and large publishers.
2. Total revenue management
AdSense selects the most valuable ad for publishers from a large number of ad networks, to maximize ad revenues every time a page loads.
New ad serving and “dynamic allocation” technology, like the DoubleClick Ad Exchange, is emerging that enables ad revenues to be maximized across both directly and indirectly sold ad space, ad impression by ad impression, using real-time prices. Second by second, across millions of ad impressions, this can meaningfully boost major publishers’ revenues. Using this technology, the average price that a publisher receives for ad space sold through the Ad Exchange is more than 130 percent higher than the average price of ad space sold directly to ad networks. In fact, without this type of dynamic allocation across sales channels, a publisher’s revenues can never truly be maximized.
3. More insight and control
Our vision is to provide all publishers the smartest possible advertising system that can give them knowledge and control of everything going on with their ad business. The vision is already becoming a reality: the upgraded DoubleClick for Publishers platform offers publishers 4,000 times more data than its predecessor. And in recent years, we’ve been constantly adding new reporting options for our AdSense partners.
4. Betting on openness
An open ecosystem drives meaningful results for publishers. When a wide range of buyers can bid for a publisher’s ad space, through an advertising exchange or network, this creates more competition for that ad space, while giving publishers choice over whose ads they want to appear. On the DoubleClick Ad Exchange, an enormous number of advertisers, belonging to over 50 ad networks, compete for publishers’ ad space. Of course, at the same time, we’re also providing publishers robust technologies and controls that can block any unwanted ads or networks.
Similarly, we believe that one of the best ways to encourage innovation is to open code to the web developer community. of better, more valuable ad innovations.
5. Everything is going to be “display”
Display advertising is about much more than ads in web browsers. People are watching video, reading newspapers, magazines, books and listening to digital music at an ever-increasing rate. They’re turning to a plethora of new devices—smartphones, tablets, e-readers and even video game consoles. We’ve designed our platform, and are continuing to invest in it, to give publishers a single base that can deliver ads into this expanding world—including streaming video, mobile ad delivery and more.
The past (and future) of display advertising according to Google
Mar 19th
This week marks two years since Google completed its acquisition of DoubleClick. What’s its vision for online display advertising going forward?
Susan Wojcicki, Vice President of Product Management at Google, explains on Google’s blog that the first online display advertisement — a simple, clickable image — appeared online over 16 years ago.
Nowadays, internet users are likely to see display ads — image, text, video and rich-media formats — on most of the websites they visit.
“These ads are crucial to the internet,” explains Wojcicki. “They provide information about thousands of products, services and businesses. They help to fund the web content and services that we all use. And they enable large and small advertisers to reach new customers, increase sales and grow their businesses.”
Most of all, they make up the most lucrative advertising business thee world has ever seen. It was display ads, after all, that signaled the beginning of the digital marketing era.
Google in trouble again. Microsoft dobbed.
Feb 24th
Google yesterday took the wraps off its new publisher-side ad platform, combining its ad and search technologies with DoubleClick’s. Today, it has been met with a frosty reception from the European Commission over several competition complaints from rivals.
Google’s combined DoubleClick and Google Ad Manager product is designed to ease the complexity publishers face in serving ads, managing ad network relationships and maximizing revenue from inventory sold directly and through ad nets or exchanges, says Google’s blog.
New features include an open API that lets publishers tie in third-party applications like forecasting and workflow tools, integration with the DoubleClick Ad Exchange and new yield-optimization features.
But the European Commission is now considering complaints from three online companies regarding Google practices including its search rankings, which could stop the search giant dead in its tracks.
The complaints from UK price comparison site Foundem and French legal search engine ejustice.fr allege that Google’s search algorithm demotes their sites in web search results because they compete with Google.
Microsoft-owned Ciao has also complained to European authorities about Google’s standard terms and conditions, which has led Google to tell some reporters that it believes Microsoft has fuelled the complaint fire.
Google has been plagued by regulatory scrutiny in recent years. Most recently, the US Department of Justice has challenged Google’s settlement with book publishers and authors groups to create an online digital archive. The US Federal Trade Commission is also seeking more information on the competitive impact of its proposed $750 million purchase of mobile advertising company AdMob.
Now, the European Commission has written to Google to find out how its search functions work.
But Google is betting publishers will want the simplicity of a single provider to manage their inventory and provide monetization options through either its AdSense ad network or the DoubleClick exchange.
Google said on its blog, “We see an opportunity to improve ad serving even further by combining Google’s technology and infrastructure with DoubleClick’s display advertising and ad serving experience. Since we acquired DoubleClick in March 2008, our engineering and product teams have been working with online publishers to tackle the obstacles that prevent them from maximizing revenues from their websites.”
Either way you look at it, this is a sign of many more battles to come when it comes to the search giants. But is Google really doing anything wrong? Perhaps its competitors are just jealous…
Forget SEO and PPC, display advertising is hot for 2010
Dec 15th
Google has made a number of acquisitions in the past month which it will next year be using to its full advantage as new players enter the search marketing war.
Online display advertising, viewed by many marketers as inefficient and time-consuming, has been a bit of a hard sell in recent years, but next year, Google is aiming to change all that.
Hundreds of thousands of advertisers use search advertising — short, highly relevant text ads alongside search results on Google and other search engines — to grow their businesses. Thanks to a decade of innovation, search advertising is an open platform that allows businesses to easily connect with customers.
But now, Google is expecting the “if you build it, they will come” model to pay off.
Display advertising, such as videos, images and interactive ads, connect users with products, services and ideas that interest them. For advertisers, display ads are vital in boosting awareness and sales. For websites and online publishers, they help fund investments in online content and the web services that we all use.
But with a multitude of display ad formats, and thousands of websites, it often takes thousands of hours for advertisers to plan and manage their display ad campaigns. With this complexity, lots of advertisers today just don’t bother, or don’t invest as much as they would like, which is why, for 2010, Google has made it a whole lot easier.
The search engine giant rolled out a new version of its DoubleClick ad exchange in September to open display ad buying to more marketers believing that if it could make it as easy as possible for people to buy display ads, the network can grow.
Display advertising is an important part of any digital marketing programme.
Marketers spent $7.7 billion (£4.7bn) on display ads in the US alone last year. Even though spending will be up 5% this year, according to marketing research company eMarketer, it’s still tiny compared to the search advertising market.
So far though, Google is only just get started when it comes to web display ads.
Improved display technology will make ads more appealing to web users and, therefore, more effective for more marketers. Google knows that advertisers, big and small, are looking for measurable results – and consumer data that will help them target potential customers.
And don’t forget about Google’s purchase of AdMob in November – the mobile ad service will let Google draw analysis from consumers’ phones, as well as their computers, and enable the company to provide insight on which display ads are most effective and which delivery formats perform best.
The AdMob buy and an October launch of Campaign Insights, a data compiling tool that helps marketers track how often consumers are searching for terms and which ads they click, is part of a broader strategy at Google.
It believes that by growing the display advertising pie, everyone will greatly enhance the web experience for advertisers, publishers, and ultimately users. But will display ever take over search…or social media?
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