Google AdSense change pricing model
2 April 2004
Google announced yesterday that they are changing the pricing model for AdWords listings that are displayed across their AdSense publisher network.
The new model draws upon Google's technology to determine the likelihood of the click to convert to a sale for the advertiser based upon the content on the publishers' site.
This reactive move follows other contextual advertising programs such as Kandoodle's ContextTarget and Overture's AdSonar championing their programs for the facility to set different prices to those on their PPC engines. It has been widely commented that casual web surfers are not at the same stage in the buying process as people using search engines. As such, contextual ads are less likely to convert than search engine listings.
The example given by Google is that a click on an ad for digital cameras on a web page about photography tips may be worth less than a click on the same ad appearing next to a review of a digital camera.
It is expected that this wording may lead to a rush of AdSense publishers taking Google's word literally and producing consumer review websites.
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