Google Opens Ad Platform to Third-Party Networks
InternetNews.com wrote:
Google is opening up its ad platform AdSense by allowing other display advertising companies to place promotional content on AdSense publisher sites.
Google AdSense is a way for Web site publishers to earn money by displaying targeted ads from Google’s ad network on their Web pages. AdSense also allows publishers to provide Google search to site users, and then earn money by displaying Google ads on the search results pages. Depending on the type of ad, publishers get paid when users view or click on the ads displayed.
Now the search giant says it will allow third-party networks it approves to bid through auctions to have their ads appear on AdSense partner sites.
For example, if Google offers $2 CMP (cost-per-thousand-impressions) on display ads for a site, but another ad network bids higher at $3, the other ad network’s ad would be shown, resulting in more money for the publisher.
In an AdWords’ FAQ regarding the news, Google outlined the criteria for certifying the outside ad networks, saying they’ll be judged according to its commitment to users’ “privacy, accuracy of measurement, latency, and compliance with our creative policies.”
Companies may also opt out of allowing outside networks to bid on inventory, but Google says they’ll be missing out on an opportunity to generate more revenue.
“AdSense allows multiple Google certified ad networks to compete for your ad units. More ad networks mean more competition; as a result, you can generate the most profit for every ad unit, whether the winning bids come from AdWords or other ad networks,” reads the FAQ. “Contextually-targeted and placement-targeted ads from Google certified ad networks are eligible to appear on your pages, which will increase competition for your ad units and make your available ad space more valuable.”
Tapping big growth in ad networks
The news of Google’s open policy for AdSense comes at a time when ad networks are experiencing double-digit growth, transforming the way online advertising works.
Ad networks match advertisers with Web publishers, connecting sites that sell ad space with advertisers that want to reach potential customers, often based on shared interests, for instance, sports, outdoor hobbies or travel.
The networks are generally comprised of lots of smaller, lesser-known sites and, as a result, advertisers can reach audiences as big as those at a single, super-sized Web site with a Fortune 500 name, but at a fraction of the cost. As a result, the ad networks are earning more online ad dollars and growing at a rapid clip.
Also, during the recession, brands are increasingly looking to interactive marketing to promote their products. Interactive marketing will near $55 billion and represent 21 percent of all marketing dollars spent in 2014 as advertisers shift money away from traditional media to search marketing, online display advertising, e-mail marketing, social media and mobile promotions, according to a recent Forrester research study.
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