Google targets brand advertisers with major display ad pricing change

|By:, SA News Editor

Google (GOOG -0.3%) is now allowing auction-based purchases of display ads for the Google Display Network (features 2M+ sites) to be based on how often users view an ad, rather than how often an ad is loaded (CPM-based pricing) or how often it's clicked (CPC-based pricing).

The Web giant asserts making viewability "a basis for buying, selling and measuring media" will allow brand advertisers to run more creative campaigns, and allow publishers to "more fairly value all of their inventory."

Wells Fargo agrees: The firm argues Google's move "aligns internet advertising with the foundational measurement standard of all measured media types," and will be well-received by brand advertisers, who often have a harder time than other marketers (such as e-commerce firms) in measuring ROIs for Internet campaigns.

The pricing policy change follows a Q3 in which Google's ad network revenue only rose 1% Y/Y (compares with 22% revenue growth for Google sites), thanks in large part to policy changes meant to create a better user experience.