Google To Charge For AdWords API

    April 18, 2006
    WebProNews Staff

The current free quota system used in capping developer usage will be replaced by a usage-based fee system that will charge developers 25 cents per 1,000 quota units used.

This change takes place July 1st, Google announced in its AdWords API blog.

“We are changing the quota allocation system and pricing model to create a more flexible and level playing field that encourages efficient coding and application design,” Rohit Dhawan, AdWords API Product Manager, wrote in the blog entry. “As a result, current developer quota caps will be removed in order to provide a more flexible and scalable system for quota allocation and consumption.”

Google has also modified the terms and conditions of the AdWords API “in order to simplify developers’ abilities to commercialize their applications while at the same time ensuring that advertiser returns are maximized through the promotion of certain functional standards.”

More information should be available in June, when Google launches a micro-site that provides more details on API registration, and details the billing processes and procedures Google will use in association with the changes.

Some developers may encounter an issue with the terms and conditions Google revised. Usage of the API must not co-mingle data to or from third-party advertising networks, presumably those from Yahoo or MSN.

Despite the new charges, the AdWords API will remain in beta status. Google is not guaranteeing access via the API, and could change the API standards at anytime. Also, there are no service level agreements with the changes in API terms either.


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David Utter is a staff writer for WebProNews covering technology and business.