Opinion and commentary about Mac and iOS applications, publishing and content consumption behavior, web and cloud architectures
September 29, 2010

Google and Sexy Display Ads

In five years, Salzman (Google) said 75% of display ads will be “social,” meaning people will be able to comment on them, share them with friends on social networks, or “subscribe” to them, implying that users could sign up to receive notices of when similar ads are available to watch. Google also said 50% of display ad campaigns will include video ads for which advertisers pay based on how many individuals viewed them, and that 50% of ads will use real-time bidding technology that wasn’t previously available.

In addition, Google demonstrated several new technologies including new video ad formats for its YouTube service, which Google calls “TrueView.” The YouTube ad formats, which will roll out later this year, give viewers the option to skip an ad if they don’t want to watch, or to choose from multiple ads the one they want to watch, similar to ad experiences on rival Hulu. Advertisers on YouTube only pay if the user chooses to watch their ad. Other YouTube ad initiatives charge advertisers based on how many users view ad.

“On television, [networks] generally made more money by showing more ads,” said Shishir Mehrotra, a YouTube executive. “Online video will reverse that trend.”

Don’t let you get tricked by words like ‘sexy’, ‘social, ‘interactive’. Key messages here are:

  • Google wants the CPM model to transform into CPA/CPC
  • Google doesn’t really care about publishers or advertisers as long as it can have a large part of the pie