Google Alters Ad Pricing

    April 2, 2004

An announcement from Google concerning the pricing of their AdSense campaign may lower the price of ads that Google places on web pages. Google stated it would be adjusting its prices for these advertisements.

AdSense, a large source of Google’s revenue, places ads based on the content of the customer’s site.

According to Susan Wojcicki, director of product management for Google, this change comes from the requests of advertisers who want to price search-based ads and content-based advertising campaigns differently.

In the AdSense program, advertisers pay Google each time a searcher clicks on one of the ads. These advertisers have requested Google and other keyword based ad services to offer different pricing on clicks from search and content ads.

Google believes that search-based ads are more targeted than content ads, and therefore generate more clicks and revenue. While skepticism remains concerning content-based ads, Wojcicki maintains that some content ads perform as well as search-based ads.

Wojcicki also stated that some advertisers would immediately see some of their costs fall due to the new pricing.

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