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This is the latest post in our series on the future of display advertising. Today, director of product management Jonathan Bellack looks at our efforts to help online publishers generate more advertising revenue – Ed.

For millions of online publishers—from the smallest blogger to the largest entertainment, news, e-commerce and information sites—online advertising revenue is vital. When publishers can maximize their returns, everyone benefits from more vibrant online content and websites. But the pace of change in the industry can be intimidating—how can a publisher keep up with what’s new, let alone grow their business?

We believe that the new technology we’re developing to make display advertising work better will help to grow the display advertising pie for all publishers, by orders of magnitude. We shouldn’t be asking how publishers can eke another 5 or 10 percent out of display advertising in the next few years. We should be looking at how the industry can double or triple in size.

We’ve previously described our three core display ad products for publishers:

  • AdSense, which places the most valuable, relevant ads on our partners’ websites, without the publishers having to sell the ad space themselves;
  • DoubleClick for Publishers, our ad serving platform, which maximizes the value of ad space that publishers have directly sold themselves;
  • DoubleClick Ad Exchange, a real-time auction marketplace, which maximizes large publishers’ overall returns, by “dynamically allocating” the highest value ad, whether directly sold, or indirectly sold through an ad network.

I wanted to highlight the key principles guiding our future product innovations in this area, as we work to help all publishers maximize their online ad revenues.

1. Making life more efficient
For most large publishers, directly sold ads (ads sold by their own sales force) comprise the vast majority of their ad revenues. But today, selling and managing these ads is frustrating, expensive and often involves tedious manual processes.

Imagine a TV network that receives TV commercials in 100 different formats, languages, lengths and video dimensions, and then has to manually convert, translate and edit them all, then manually count the number of TV sets on which the ad appeared before sending a bill. Sounds crazy, right? Well, that scenario is far less challenging than what most large online publishers face today with display advertising. Today, across the industry, for every dollar spent on display advertising, 28 cents is eaten up in administrative costs. If we can reduce that proportion, it would mean a lot more money going to publishers.

Things like new standards for video ad serving and systems that connect buyers and sellers are helping publishers support the most engaging and creative ads across their sites. But there are quantum leaps to come in this area, for small and large publishers. Think of a political candidate who is seeking donations on his or her website—the candidate can receive money in seconds. Imagine if publishers—even the smallest website—had tools that enabled advertisers to click a button on their site to upload an ad, let them pay for it with a credit card, and then deliver this ad—through the publisher’s ad server—within minutes. This sort of “immediate ad” will become possible as ad serving technology continues to simplify the process of buying and selling ad space.

2. Total revenue management
AdSense selects the most valuable ad for publishers from a large number of ad networks, to maximize ad revenues every time a page loads.

New ad serving and “dynamic allocation” technology, like the DoubleClick Ad Exchange, is emerging that enables ad revenues to be maximized across both directly and indirectly sold ad space, ad impression by ad impression, using real-time prices. Second by second, across millions of ad impressions, this can meaningfully boost major publishers’ revenues. Using this technology, the average price that a publisher receives for ad space sold through the Ad Exchange is more than 130 percent higher than the average price of ad space sold directly to ad networks. In fact, without this type of dynamic allocation across sales channels, a publisher’s revenues can never truly be maximized.

In years to come, this true revenue maximization can get even smarter. There’s no question that delivering the right ad to the right user at the right time delivers better results. We have years of experience in doing this with search and text ads; we’re now bringing that experience to the world of display. This means investing in a smarter ad server that can automatically learn where and when a given ad will get the best response, as well as manage delivery to deliver those improved results for publishers. This new ad server can even anticipate a publisher’s future events and adjust delivery accordingly—for example, if traffic drops off every weekend, the ad server can automatically speed up during the week to keep everything moving smoothly.

3. More insight and control
Our vision is to provide all publishers the smartest possible advertising system that can give them knowledge and control of everything going on with their ad business. The vision is already becoming a reality: the upgraded DoubleClick for Publishers platform offers publishers 4,000 times more data than its predecessor. And in recent years, we’ve been constantly adding new reporting options for our AdSense partners.

By putting publishers in firm control and empowering them with more data, reports and controls (for example, over what advertisers and ad networks they allow), they’ll be able to make fully informed decisions about ad space forecasting, segmentation, targeting, allocation and pricing. This helps them to extract the maximum value from their sites and uncover new advertising opportunities—the gold that’s buried under their own sites.

4. Betting on openness
An open ecosystem drives meaningful results for publishers. When a wide range of buyers can bid for a publisher’s ad space, through an advertising exchange or network, this creates more competition for that ad space, while giving publishers choice over whose ads they want to appear. On the DoubleClick Ad Exchange, an enormous number of advertisers, belonging to over 50 ad networks, compete for publishers’ ad space. Of course, at the same time, we’re also providing publishers robust technologies and controls that can block any unwanted ads or networks.

Similarly, we believe that one of the best ways to encourage innovation is to open code to the web developer community. Look at the incredible mashups that have been created through the Google Maps API, or the range of mobile devices that have been created from our open source Android code.

This same approach can generate significant advantages for publishers. When we rolled out the upgraded DoubleClick for Publishers, we launched a new public API. This gives publishers and developers the tools to drive innovation and deliver value-adding “advertising apps” for publishers—like inventory analysis, sales workflow tools and more—without having to build an ad server from scratch. This will help drive the next generation of better, more valuable ad innovations.

5. Everything is going to be “display”
Display advertising is about much more than ads in web browsers. People are watching video, reading newspapers, magazines, books and listening to digital music at an ever-increasing rate. They’re turning to a plethora of new devices—smartphones, tablets, e-readers and even video game consoles. We’ve designed our platform, and are continuing to invest in it, to give publishers a single base that can deliver ads into this expanding world—including streaming video, mobile ad delivery and more.

Looking forward, what we call “display” today will just be “advertising”—a single platform that can coordinate an advertiser’s campaign across streaming audio ads in car stereos, interactive mobile experiences on smartphones, and HD video ads on set-top boxes. Imagine if that single platform could optimize the campaign, automatically delivering the best-performing ads, best returns and best mix, across all those platforms. That’s the future we envisage.

An exciting time ahead
We’re unapologetically optimistic about the future of display advertising for online publishers. There’s great innovation taking place in this area that will make the current landscape look primitive within a few years. We’ll keep working hard to help all publishers take advantage of these opportunities.

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Online publishers: growing the display advertising pie

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Last Friday, we said that mobile advertising was moving fast. So are we! Today, we closed our acquisition of AdMob. Omar Hamoui has built a great team and great products at AdMob and we’re thrilled to officially welcome them to Google.

We’ll now begin the process of bringing our products and teams together in the best way, and building new products and features together. We’re working to make this integration happen as fast and as seamlessly as possible. We’ll actively keep our clients up-to-date as we bring our businesses together — stay tuned!

It’s clear that mobile advertising is becoming a much larger part of our clients’ and partners’ strategies and with this acquisition, it’s now a central part of our own business. In continuing to invest in this highly competitive area, we’ll be bringing together our technology, resources and expertise in search advertising with AdMob’s innovative solutions for advertising on mobile websites and in mobile applications.

Mobile search is central

One of the key ways that people find and access information on their mobile devices, just like on the desktop, is through search. As smart phones have proliferated, we’ve seen dramatic increases in mobile search volume. Over the past two years, Google’s mobile search volumes have grown more than fivefold, at an accelerated pace. In the first three months of 2010, people with smartphones with “full” WebKit browsers (such as the iPhones, Android devices and Palm Pre) searched 62 percent more than they did in the previous three months.

Increasingly, people aren’t just typing search queries into their mobile devices. They speak them, they take photos of them and they even translate them from different languages.

In addition to traditional search ads on mobile devices, we’ve worked to develop entirely new search ad formats. “Click-to-call” search ads, for example, have been really popular. They enable advertisers to include a local business or national phone number directly in their ad text that you can click to reach the business directly via phone. This is a really great way for you to easily get information from a relevant business (say, a local restaurant), and a highly effective way for advertisers to connect with interested customers.

With many more advances to come, search advertising will remain the central way that many businesses connect with consumers on mobile devices.

Mobile websites and apps

In addition to search, another key way that people access information is through mobile websites (accessed through a browser) and mobile apps (available through Apple’s App Store, the Android Marketplace and more).

Mobile display and text ads make it easy for publishers and developers to make money from their mobile websites and apps, and enable advertisers to extend the reach of their campaigns to relevant mobile content. In this area, AdMob has been a real pioneer and has innovated at a tremendous pace, building a successful business and working with thousands of advertisers, publishers and developers.

AdMob was one of the first companies to serve ads inside mobile applications on the Android and iPhone platforms. They’ve developed a host of engaging and creative ad units for Android and iPhone apps—for example, interactive video ad units and expandable rich media ads. Google has also been developing new features for in-app ads. For example, last week, we announced that we’ll be making “click-to-call” ad formats available to developers who run AdSense in their mobile apps. With Google and AdMob starting to work together, there’s lots more innovation to come in this area.

The future

It’s clear that mobile advertising is growing incredibly fast with lots of businesses innovating at great speed. Every day, more marketers are looking to take advantage of the mobile-specific capabilities, extended reach, great returns and value that mobile advertising provides. Advertisers are now starting to see mobile as an essential part of their overall campaigns, not just a silo-ed experiment on the side.

We want to unleash agencies’ and advertisers’ creativity on all mobile devices and deliver them better results from their campaigns, drive better returns and more choice for publishers and developers, and help people get better ads and more free mobile content.

We believe that mobile advertising can play a significant role in every single marketing campaign. We’re passionate about the unlimited possibilities in this space. Today, with AdMob, our work to make them a reality begins.

Stock Repurchase
As previously announced, Google intends to repurchase in the open market a number of shares equal to the number of shares issued in the transaction and issuable upon exercise of outstanding options to purchase common stock issued by AdMob. The repurchase program is expected to commence shortly after the completion of the acquisition. The repurchases will be funded from available working capital.

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The report is filled with really wonderful stories about the direct economic impact that AdWords, AdSense, Google Grants and our search engine have across the country. These are the stories of entrepreneurs across the country growing their businesses with Google. And this morning Googlers are hosting events in 10 other cities across the country (Atlanta, Austin, Boston, Chicago, Detroit, New York, Oakland, Portland (OR), Raleigh and Seattle) to help share those stories. Ladies and gentlemen, start your economic engines!

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can u make money with google gadgets

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Today, the Federal Trade Commission cleared our acquisition of AdMob, a mobile advertising start up. We’re excited to work with Omar Hamoui and his talented team at AdMob to develop new mobile advertising solutions for marketers, mobile app developers and mobile publishers.

The decision is great news for the mobile advertising ecosystem as a whole. This was reflected in the widespread industry support for our acquisition.

Throughout the FTC’s review process, it’s been clear that mobile advertising is growing rapidly.

As mobile phone usage increases, growth in mobile advertising is only going to accelerate. This benefits mobile developers and publishers who will get better advertising solutions, marketers who will find new ways to reach consumers, and users who will get better ads and more free content.

We’re very excited about the possibilities in this field. As an immediate matter, we’re now moving to close this acquisition in coming weeks. We’ll then start work right away on bringing AdMob’s and Google’s teams and products together. This industry is moving fast, and we’re excited to be part of the race!

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Working with AdMob to move mobile advertising forward

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Today at Moscone West in San Francisco, we’re kicking off our largest developer conference of the year, Google I/O. Over two days, 5,000 people from 66 countries will hear from 200 speakers, see 180+ developer demonstrations and participate in more than 90 technical sessions, breakouts and fireside chats to meet engineers from Google and partner companies.

At last year’s I/O, we demonstrated the potential of HTML5. Since then, the web has moved from a promising platform to a compelling setting for developers to build apps. This week we’ll celebrate this ongoing evolution of the web and share some of our latest work in moving the web forward and keeping it open.

Today we’re announcing Google App Engine for Business, which offers new features that enable companies to build internal applications on the same reliable, scalable and secure infrastructure that we at Google use for our own apps. For greater cloud portability, we’re also teaming up with VMware to make it easier for companies to build rich web apps and deploy them to the cloud of their choice or on-premise. In just one click, users of the new versions of SpringSource Tool Suite and Google Web Toolkit can deploy their application to Google App Engine for Business, a VMware environment or other infrastructure, such as Amazon EC2.

There are already lots of great apps out on the web, but there hasn’t been one destination where you could easily find them. Our new Chrome Web Store is an open marketplace for web apps that helps people find the best web applications across the Internet and allows developers to reach new users. We also joined other web companies in announcing WebM, an open web media format project and open-sourced VP8, a high-quality, web-optimized video codec, that we are contributing to the project under a royalty-free license.

We’re pleased to share some updates to our APIs too. Last year, we announced the Google Maps API v3, which was designed to be faster and optimized for mobile devices. Today this API is graduating from Code Labs and is enterprise-ready as part of Google Maps API Premier. We’re also announcing new ways for publishers to improve the relevance of their AdSense ads, a brand-new version of the Feed API with push updates that make the latest PubSubHubbub-enabled feed data available without requiring visitors to refresh pages, and a library of high-quality open-source web fonts, accessible to everyone through the new Google Font API.

Finally, last year we introduced a new way to communicate and collaborate called Google Wave. Today we’re opening Wave to everyone — no invitation necessary — at wave.google.com, as part of Google Labs. Google Apps administrators can also enable it for their domains and help groups of people work together more productively. To learn more about this, our many new API features and more open-source code for developers, visit the Wave Developer blog.

For lots more about Google I/O 2010, visit http://code.google.com/events/io/ and follow us on the Code Blog, Twitter @googleio (#io2010) and Buzz.

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Google I/O 2010 Day 1: A more powerful web in more places

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(Cross-posted on the Inside AdWords and the Agency Ad Solutions blogs)

As the advertising industry has grown and evolved, so too has our relationship with advertising agencies. These companies, from SEMs to the largest traditional agencies, play a critical role in the continued success of Google, our advertisers and our industry — so we spend a lot of time talking to agencies about how we can make it easier for them to work with us and our advertisers.

We’ve had a lot of great feedback from agencies and today we’re announcing changes designed to offer them better training and more rigorous certification in AdWords proficiency, and to lower costs for those who help advertisers get the most out of AdWords. We’re also making it easier for advertisers to find certified agency partners to work with them on digital advertising. Here’s an overview of what’s changing today.

Raising the bar for Google AdWords Certification
We’re retiring our long-standing Google Advertising Professionals (GAP) program and replacing it with a new Google AdWords Certification program for those managing AdWords accounts on behalf of advertisers. The new program provides agencies and their employees with more up-to-date, comprehensive, strategy-focused training and certification on the latest tools and best practices for managing AdWords accounts, including:

  • New training materials to help agencies better understand recent changes in search marketing and AdWords functionality, available via webinar series, learning center, or on-site training at Google
  • More challenging certification exams to test practical application of knowledge and best practices (rather than simple recall of knowledge)
  • Advanced-level exams to highlight competency in search, display, reporting and analysis
  • A redesigned Certified Partner badge, which includes a “Click to Verify” element so advertisers can view the partner’s profile page for additional information.


For more information on the AdWords Certification Program or to create an account, visit the Google Certification program site and help center.

Helping advertisers find Google Certified Partners
Google Certified Partners can opt in to Google Partner Search, an online, searchable directory that helps advertisers identify Certified Partners that meet their criteria. Small and medium-sized advertisers who haven’t previously used an agency have told us that evaluating potential partners can be a daunting task, so we think Google Partner Search will be especially valuable for them.

To show up in advertiser searches through Google Partner Search, agencies must opt in and fill in details about their core attributes and capabilities. Searches can be filtered by location, agency experience within a particular budget range, the types of services provided and the industry verticals an agency serves. Advertisers can then evaluate the list of Certified Partners that meet their criteria and contact the partners who seem best suited to their needs. To learn more about Google Partner Search, visit the help center.

Introducing preferred AdWords API pricing
The Google AdWords API allows developers to build applications that interact directly with the AdWords platform. Agencies and developers of search engine marketing tools use these applications to manage large AdWords campaigns more efficiently and creatively.

Today, we’re announcing preferred AdWords API pricing. This gives qualified Google AdWords Certified Partners who manage client AdWords accounts free use of the AdWords API based on managed client spend. To apply, agencies must have an active agency profile page and be compliant with the AdWords API terms and conditions. We’ll evaluate applications for preferred AdWords API pricing based on the criteria listed here.

We hope preferred AdWords API pricing will encourage agencies and developers to experiment with new strategies, expand the functionality of their tools, and build more comprehensive client campaigns without worrying about increased costs. You can learn more about preferred pricing and how to apply at the preferred AdWords API pricing site.

We’re looking forward to receiving feedback on all of these initiatives and to continuing to improve our partnership with agencies.

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A new approach to how we work with advertising agencies

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This is the third post in our series on the future of display advertising. Today, Director of Product Management, Ari Paparo, looks at how better data will help marketers plan and measure their display campaigns in the future – Ed.

Basketball teams in the 1980s looked at fairly simple statistics — points, rebounds, assists and shooting percentages — to measure team and player performance. However, in recent years, there’s been a data renaissance — a recognition of the need to develop more insightful measures, and a resurgence in appreciation for the value of data in sports. Now, professional basketball teams measure all sorts of on-court happenings, as well as more ethereal things like team chemistry and player psychology. As advertisers and agencies try to plan and measure their display ad campaigns, they’re much like basketball teams stuck in the 80’s. Today, planning display advertising campaigns is largely based on relationships and habits, and often-primitive measures of website traffic. If asked to quantify the impact of their display ad campaigns, many advertisers could show you the number of clicks on their ads, and then shrug.

The Internet has long held out the promise of being a truly accountable, measurable medium for marketers. In search advertising, a decade of investment in analytics and measurement tools has helped to realize that promise. But the same tools for display advertising have lagged.

In the previous post in this series, Neal Mohan wrote about the creative possibilities that new display advertising technology is enabling. But how do marketers work out where to buy these ads, and quantify their impact? Let’s look at what’s becoming possible as we start to use newer technologies, improved statistical models and aggregated data to improve the planning and measurement of display advertising. Imagine an ad agency tasked with planning and measuring a campaign for a new male cologne (specially endorsed by a famous DJ). The ideal target audience is males aged 18-35 who are interested in dance music, well-groomed and who think they’re hip.

Today, it’s possible (using tools like DoubleClick Ad Planner) to find popular U.S. sites that are read by males aged 18-35 who are interested in dance music or who have previously visited the DJ’s website. Of course, there’s no way to tell which sites’ readers are well-groomed or if they’re hip, but media planners can add in terms like “clubs,” “nightlife”, “sample sale” and “fashion” into Ad Planner’s search term correlator to find sites whose users are more likely to search for those terms, as measured across large quantities of data.

Looking forward, what if the agency could seamlessly click a checkbox to pull in site performance data from that same client’s last ad campaign? The planner could rank the sites in the media plan that produced the best results for the last campaign. And what if the agency could click another checkbox to select recommended high-performing sites in the Google Content Network that offer above the fold placements and that fall within the client’s budget and targeting criteria, then buy them with a click of the button in AdWords?

Just as we’re working to make planning more precise, we’re also focused on evolving display measurement tools. For a long time, display advertisers have used fairly simple measures like clicks, impressions or conversions. These are great metrics for some types of marketing campaigns. But not for all. Not every ad campaign is looking to deliver an immediate sale. Lots of advertising — like the cologne campaign — is designed to influence opinions, spread buzz or build brand associations. For these campaigns, measuring clicks is like trying to judge an entire movie after watching just five minutes.

We’re developing new measurement products designed to gauge the impact of ads on brand awareness or on user interest in the product being advertised. Let’s go back to our cologne example. Today, using our new tool called Campaign Insights, the agency can reliably measure the “brand lift” directly attributable to the display campaign. This measurement tool looks at two large groups of users — one that has seen the ad, and one that hasn’t. It then compares the volume of searches and website visits to measure how awareness of the brand has improved as a result of the display ad campaign.

Think about what other measurement tools may become possible. What if the agency could use an even larger real-time focus group like, say, the entire Internet? It could include social features in the ad, and then, by parsing public reactions — tweets, blogposts, status updates, YouTube comments and more — measure, in real time, how the Internet is responding to the cologne and the ad. This could give them an immediate, quantifiable view into the reactions and views of its potential consumers, and measure the viral effect of the ad over time. And what if the agency could precisely measure the impact of the campaign — not just on increased web traffic, searches or online comment — but (using geographical signals) on the actual purchases of their cologne in local stores? Imagine the possibilities — display ad campaigns could even communicate with the advertiser’s supply chain or inventory system.

These innovations in planning and measurement are all exciting, but what’s most revolutionary is what will happen when they’re combined. In the future, campaign measurement will take place in near real-time, creating an almost immediate feedback loop. Currently, the process is very linear — marketers plan their campaign, then buy ad space, then run their campaign, then measure the results, often with weeks in between. Soon, measurement will become truly dynamic and will feed into the planning process itself. Agencies and advertisers will be able to test multiple creatives and media plans, and immediately tweak them to deliver the best-performing ads and reach the optimal sites and audiences as measurement data starts to come in.

We’re on the cusp of a data renaissance in display ad planning and measurement. It promises to vastly improve online advertising for marketers, while resulting in ads that people find more relevant and effective. And by attracting new advertisers with more valuable ads, it will help online publishers earn more money from their online content.

We think that’s definitely something worth shooting for.

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New frontiers in display advertising planning and measurement

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The principle behind the advertising products we build at Google is simple: ads are information. But the type of information that ads provide is getting more varied and inventive all the time, and as a result ads are getting more interesting, social and useful.

As advertising evolves, we want to build the tools that make it possible for marketers to connect with customers in meaningful, creative ways. We’ve found that the best way to do that is to focus on the user, test new approaches regularly and listen closely to the feedback of the advertisers using our products. To work closely with advertisers on what comes next, today we’ve launched Google Ad Innovations, where we’ll show you some of our latest ideas around advertising technologies and get your feedback.
One of the new features we’re showcasing is a set of AdWords reports, launched last week, called Search Funnels. These reports can help an advertiser understand whether there are keywords in her account that are helping to drive sales at a later date. At Google Ad Innovations, you can read more about this feature, watch a video walking you through how it works and send us your ideas on how to improve it.
If you’re interested in the future of advertising with Google, pay Ad Innovations a visit — we’ll regularly add tools and features to the site, and we hope you’ll check them out!

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Introducing Google Ad Innovations

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This is the second post in our series on the future of display advertising. Today, Neal Mohan looks at how new technology can power creativity in the years ahead – Ed.

Imagine you own a popular coffee chain in Denver that you want to promote. On Monday afternoon, it’s warm and 80 degrees in the city. You run a display ad campaign online that offers Denverites a discount coupon for an iced cold latte, with a searchable map embedded in the ad to show local branches, and a real-time feed from people who have tweeted publicly about your newest flavor. That evening, a cold front rolls over the Rockies. Your ad automatically and dynamically adjusts to present a photo of a hot, steaming cup of hot chocolate in front of a warm fireplace, together with a home delivery number and an offer of free marshmallows.

Creative? Absolutely. Impossible? Hardly. You can do this today using technology from Teracent that we’re working to roll out for our clients who advertise on the Google Content Network or who use DoubleClick Rich Media.

There’s no doubt that advertisers today are increasingly seeking to run campaigns that are highly measurable and relevant to users. That’s one of the benefits of advertising on the Internet. But great ad campaigns are about more than clicks or numbers. The best campaigns are so memorable and effective because they make an emotional bond with us. The very best can engage us, move us and make us feel a connection with the brand that’s being promoted. That’s the real creative genius of advertising.

We traditionally think of TV as the most creative advertising media. But display advertising has the promise of a couple of things that even TV doesn’t have — the ability to dynamically customize ads in infinite ways and the opportunity to enable a true two-way interaction and dialogue with users.

Here are some examples of how creative ads have been used to drive engagement and deliver great results:

  • An award-winning rich media ad that was created by Euro RSCG for the new Volvo XC60. In addition to an interactive game, photos and gallery, it incorporated a Twitter feed from the New York Auto show. In just three days, the campaign garnered 170 million impressions, 50,000 clicks and 17,000 hours of brand engagement. No other type of advertising format could have come close in driving this type of conversation with a brand’s potential customers.
  • A great campaign for Harley Davidson, created by the agency Overdrive. This ad functions almost like a website — with interactive video, Twitter and Facebook Share functionality, as it invites people to send a “Tribute to the Troops” for Veteran’s Day. Over 280,000 people clicked to watch the video embedded in the ads and more than 18,000 Tributes were sent to troops from this campaign.


Some in our industry have asked why we aren’t seeing more creative display ad campaigns like these. In our view, it’s definitely not because of a lack of creativity or an unwillingness to experiment. The problem to date has been the lack of tools and technologies necessary to do this at scale across the Internet.

It takes hard work to create, serve and measure the impact of these ads. Under the hood, there’s a lot of technology that needs to come together for them to work seamlessly. Take the Harley Davidson ad: It contains dozens of complex creative elements, integrations with various technologies like Flash, numerous APIs, Twitter and Facebook, and multiple parties involved in its creation and delivery — from the creative agency, to teams at Google, through to the ad operations teams at the publisher. You could spend hundreds or thousands of hours building out creative concepts and ads like this, but ultimately only run them on a few sites because the customization takes so much time to implement across the web.

We believe that technology, by streamlining and eliminating some of the hard work involved, and by offering new creative possibilities, can be a great enabler of more creative ads.

What if it were seamless to serve and run highly creative ad units — not just on one site, but on thousands of sites, and also in videos and on mobile phones? What if it were simpler to incorporate social features in the ad creative itself — such as letting people endorse and spread particular ads or campaigns to their friends? What if you could serve video ads that included simple tools in the ad creative itself that allowed users to easily make their own mashups of your ad, and post and share them with friends?

And what if you could make a few different creative elements for an ad, and then have them dynamically chosen, depending on factors like where the ad’s shown, product availability, time of day and any other variable you choose — just like the coffee ad I mentioned at the start? That way, agencies and advertisers would be able to spend their time building out their creative concepts and ads, and technology can multiply the impact by running it on thousands of sites with millions of variations for every website and user.

Technology is evolving rapidly and will help facilitate all of this in the months and years ahead. What about imagining what might be possible on your phone in a few years? Let’s say you’re walking down the street, using an augmented reality app on your mobile phone to see what’s interesting around you. In your viewfinder, you see a billboard for a great product — basketball shoes. Using image recognition, the app could recognize that it’s a billboard for a particular shoe brand, show an expandable ad for that brand, let you choose to watch a video of one of their shoes in action, display all the nearest stores on an accompanying map, and include a way for you to order a shoe and pick it up on your way home from work.

That’s just one example of what one day will be possible in the world of display advertising. It’s the goal of our display advertising efforts to produce the tools and technologies to allow for this type of unbridled creativity at a grand scale.

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Display advertising: towards creativity without limits

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Google aims to provide as much information as possible to users so that they can make informed decisions. For this reason, we have been awaiting a series of decisions by the European Court of Justice that explore the extent to which trade mark rights can be used to restrict information available to users. The first of those decisions was delivered today.

The question before the court was whether advertisers should be allowed to choose keywords freely when reaching out to users on the Internet. In other words, if advertisers are allowed to show advertisements when another company’s brand name is entered as a search query.

Trade marks are part of our daily life and culture, helping us to identify the products and services that we may be looking for. They are key for companies to market and advertise their products and services. But trade mark rights are not absolute.

We believe that user interest is best served by maximizing the choice of keywords, ensuring relevant and informative advertising for a wide variety of different contexts. For instance, if a user is searching for information about a particular car, he or she will want more than just that car’s website. They might be looking for different dealers that sell that car, second hand cars, reviews about the car or looking for information about other cars in the same category.

And, contrary to what some are intimating, this case is not about us arguing for a right to advertise counterfeit goods. We have strict policies that forbid the advertising of counterfeit goods; it’s a bad user experience. We work collaboratively with brand owners to better identify and deal with counterfeiters.

Some companies want to limit choice for users by extending trade mark law to encompass the use of keywords in online advertising. Ultimately they want to be able to exercise greater control over the infomation available to users by preventing other companies from advertising when a user enters their trade mark as a search query. In other words, controlling and restricting the amount of information that users may see in response to their searches.

Today, the Court confirmed that Google has not infringed trade mark law by allowing advertisers to bid for keywords corresponding to their competitors’ trade marks. It also confirmed that European law that protects internet hosting services applies to Google’s AdWords advertising system. This is important because it is a fundamental principle behind the free flow of information over the internet.

Our guiding principle has always been that advertising should benefit users, and our aim is to ensure that ads are relevant and useful. We will study the decision as we move forward in order to make sure that we continue to deliver advertising that is perceived as both valuable and relevant by our users.

Posted by Dr. Harjinder S. Obhi, Senior Litigation Counsel, EMEA

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It’s been two years since we completed our acquisition of DoubleClick, a leading provider of display advertising technology. This is the first in a series of posts over the next few weeks about our vision for online display advertising in the years ahead. Today, Susan Wojcicki previews the series and looks back at how we’ve brought Google and DoubleClick technologies together over the past two years. -ed.

The first online display advertisement — a simple, clickable image — appeared online over 16 years ago. Fast forward to 2010. You’re likely to see display ads — image, text, video and rich-media formats — on most of the websites that you visit. These ads are crucial to the Internet. They provide information about thousands of products, services and businesses. They help to fund the web content and services that we all use. And they enable large and small advertisers to reach new customers, increase sales and grow their businesses.

I’ve watched display advertising evolve from a series of simple, static images, to the incredible creative units that we see today. The best display ads today are often like mini-websites with complex animations, stunning graphics or videos, interactive and social elements. As technology enables better ways of matching ads, they’re becoming more relevant to the audience that views them and the website that hosts them. In addition, they’re bought and sold across the web more seamlessly than ever before.

Our belief in the potential of display advertising has spurred our investments in this area. We started investing seriously nearly six years ago, by offering display ad formats on our AdSense partner sites in the Google Content Network (which now comprises over a million online publishers). About three years ago, we acquired YouTube and began to offer various display advertising options.

And two years ago, we acquired DoubleClick, a leading provider of display advertising technology. Since then, we’ve been busy integrating the DoubleClick and Google technologies, and unveiling new features to improve display advertising for users, advertisers and online publishers alike. I thought this was a good opportunity to look back on what we’ve done over the past two years by bringing Google and DoubleClick together.

Helping our advertisers get better results

By combining Google and DoubleClick technologies, we’ve made significant enhancements to advertising on the Google Content Network. For example, we’ve offered support for third party vendors, enabled ads to be frequency capped so that users don’t see the same ad over and over, introduced view-through conversion reporting and opened a beta of interest-based advertising. Through these enhancements, we believe we can deliver more relevant, measurable ads that create more value for everyone — users get more useful ads, and these ads generate better results for advertisers and higher returns for publishers.

We’re also working to provide an integrated solution that enables advertisers and agencies to plan, buy, create, serve and measure display ads across the web, in a single interface. For the longest time, getting a display ad campaign up and running has been inefficient and cumbersome. We’ve made significant upgrades to DoubleClick’s ad serving technology, DoubleClick for Advertisers, adding new measurement and planning technologies, including Ad Planner and Google Analytics. These improvements streamline advertisers’ and agencies’ online advertising campaigns.

New ways of buying display ads: the Ad Exchange

In September 2009, we launched the new DoubleClick Ad Exchange. The Ad Exchange is a real-time marketplace that helps large online publishers, ad networks and agency networks buy and sell display advertising space. The new Ad Exchange is a major step towards creating a more open display advertising ecosystem for everyone. The technologies in the new Ad Exchange — principally “real-time bidding” and “dynamic allocation” — are already delivering great results for participants. AdWords advertisers can run ads on sites in the Ad Exchange, using their existing AdWords interface. This gives AdWords advertisers more high quality sites to run display ads on. Similarly, our AdSense publishers are benefiting from more high-quality display advertisers coming through the Ad Exchange.

Maximizing revenue for online publishers

A few weeks ago, we launched the upgraded DoubleClick for Publishers, to help publishers get the most value out of their online content and improve the process of selecting the ads to appear on their websites. In making this upgrade, we’ve been focused on combining the best of Google’s technology and infrastructure with the best of DoubleClick’s ad serving expertise to help generate more advertising revenue for major online publishers. For these publishers, managing, delivering and measuring the performance of ads on their websites can be a hugely complicated process that can have a significant impact on how much money they make from their online content. Ad serving is the core technology that underpins this process.

Unleashing creativity in advertising

There’s no shortage of creative marketers with brilliant ideas to engage and reach consumers — from remarkable rollerblading baby videos, to customizable ads featuring interactive Twitter feeds. We launched DoubleClick Studio, a rich media tool that makes it easier for agencies and advertisers to design interactive rich media ads. We’ve also continued to invest in DoubleClick Rich Media, which enables complex and creative ads to be easily trafficked and served. Ads created with these DoubleClick products are engaging users every day, and frequently appear on the homepage of YouTube, on sites in the Google Content Network and all across the web. To further help marketers run engaging ads across the web, we recently acquired a company called Teracent that developed technology that can tailor literally thousands of creative elements of a display ad, in real-time.

To date, we’ve put hundreds of thousands of engineering hours into building our display solutions and have partnered closely with advertisers, agencies and online publishers to help them get the best results; and to help users see more engaging and relevant ads. We’ve also developed controls like the Ads Preferences Manager and a specially-engineered opt-out plugin, so that users have transparency, choice and control over the ads they see.

However, our work in recent years is really only the beginning of what’s possible in this area. Across the board, we’re building and seeing vast improvements in display advertising technology. These technology improvements will make it far easier to buy ads across the web at scale, create engaging ad formats, measure the impact of ad campaigns in innovative and insightful ways, deliver relevant ads to precisely the right audiences in real-time and maximize the value of publishers’ online content. With these advances, we think that display advertising, as a category, can grow dramatically.

Over the next few weeks, we’re looking forward to exploring these themes on this blog, and explaining some of the ways that new technologies are helping to move display advertising forward for everyone.

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The future of display advertising

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(Cross-posted with the YouTube Biz Blog)

Mobile phones are rapidly becoming essential tools for surfing the web, connecting with friends, and sharing and watching video online, and we’re seeing these effects at YouTube. The YouTube mobile site is more popular than ever: site traffic grew by over 160% in 2009, and now millions of people all over the world are streaming tens of millions of videos every day on their mobile phones. The mobile space moves fast, so we’ve been working hard to roll out new features and functionality quickly, especially as more and more people adopt YouTube-capable phones.

The increased usage of high-end devices like the iPhone and Android is also making mobile advertising easier and more effective for advertisers. So today, we’re launching ads on the home, search and browse pages of the American and Japanese YouTube mobile websites (m.youtube.com from your mobile browser). This is a great way for advertisers to reach YouTube viewers across multiple platforms. In fact, at launch YouTube will immediately provide one of the largest audiences for a mobile ad campaign anywhere on the mobile web. And because YouTube mobile attracts early adopters, the site can deliver to advertisers a coveted demographic of tech savvy trendsetters. We’ve already seen some early campaigns run on YouTube’s mobile site by advertisers like Sony (for the DVD release of “District 9″) and Kia, both of whom were able to easily reach their target audience, no matter where they were looking for video.

Our first tests of YouTube mobile ads — with brands ranging from L’Oreal to Land Rover — showed strong results related to click-throughs, user experience and brand awareness, and we’ve learned a lot in the months since then. As a result, ads on the YouTube mobile website will be banner ads sold on a full-day basis (like with the YouTube homepage on the web), making a mobile buy an easy and valuable addition to any YouTube campaign. For example, today Mazda is running a homepage ad on YouTube.com, and extended their campaign to run ads on our mobile site as well.

If you’re interested in learning more, reach out to your YouTube or Google sales rep, or visit youtube.com/advertise.

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YouTube calling: Now serving ads on the YouTube mobile site

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Ode to AdWords

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[From time to time we invite guests to blog about initiatives of interest, and are very pleased to have Allison Schwam, Senior Search Analyst at Backcountry, join us here. -Ed.]

When you don’t have to sacrifice your love of the outdoors for your career or vice versa, it’s something special. In fact, my love of both skiing and marketing has grown dramatically since I took my job at Backcountry. Getting to work with Google, specifically managing our AdWords acount, is an online marketing geek’s dream come true. Combine that with every skier’s dream of Utah powder, and life is good.

Day traders wake up every morning to check their portfolio — I get up and check my AdWords accounts. Backcountry sells gear and equipment for the outdoor enthusiast from ski boots to tents, and we sell all of it online. My job is to drive valuable, qualified traffic 365 days a year to Backcountry using AdWords. The AdWords platform lets me manage hundreds of campaigns and hundreds of thousands of keywords with relative ease. I have access to huge amounts of data that are revealed as daily ebbs and flows in impressions, clicks and bids. If you do a Google search for [telemark ski gear], you’ll see our ad:


Backcountry was founded in 1996 by two self-proclaimed ski bums, John Bresee and Jim Holland. Since then, the company has grown to hundreds of employees. I’ve been working here for over two years. Ultimately, our goal is to “crush it,” as some ski town folk say: work hard, play hard.

A typical powder day for me is like this one last Friday when Park City got 12 inches of new snow overnight. Here’s how AdWords helps me manage both work and fun.

7 – 7:45am
Roll out of bed.
Get the coffee going.
Fry eggs and bacon.
Check snow totals.

If it looks like a good ski morning, I first check my email and glance over our AdWords campaigns. All I need to do is my daily reporting to see that I’m on target for my revenue and cost goals. As long as things are okay, I email my boss to say I’ll be out slaying the white dragon.

Just as I have the ideal tools to maximize our online campaign performance, I have the tools avid skiers covet for deep days: fat, rockered skis, stiff ski boots, Gore-Tex jacket and pants, helmet, goggles, merino wool layers, etc. After I grab my gear, I’m off.

7:45am – 12noon

My commute to The Canyons Ski Resort takes 10 minutes. My friends and I know how to get the most out of our time on the mountain, balancing chair lift time, snow quality and vertical. Does that sound a bit like cost-per-click, conversion rate and top-line revenue? Take this lift to that lift, ski the trees while we wait for that chair to open, get after our favorite steep lines. Next thing you know:

Photo by Jim Harris


Face shots are invigorating. Hard to explain, best to experience! After a few glances at the time and collecting my thoughts, I make my way off the mountain.

12pm – 5pm

I head a few miles down the road to the office. As the afternoon goes by, co-workers will emerge from their cubicles; sometimes because legs are cramping up but also to share stories about how the morning was. Where did you ski? How was the snow? Smiles all around.

I settle into work knowing what I need to succeed at my job is at my fingertips. AdWords gives me visibility into my programs to prioritize and understand trends. It also makes it easy to add and edit my account without getting bogged down in manual work. I regularly use Keyword Performance Reports to monitor both head terms and tail terms to stay on top of revenue opportunities. I’ll take into account the average order value and also the percentage of clicks that turn into sales (rate of conversion) in order to manage our keyword bids. As I do bid updates, I also check the AdWords Preview Tool to see how our ads are ranked and what is going on with our competition. We don’t really focus on “cost-per-click” but instead on “cost as percentage of revenue,” which means the more people purchase, the more ads we can run. So the higher the return on advertising spend, the more room we have to grow our paid search presence.

5 pm – 8 pm

I like this afternoon time in particular because it’s quiet and I can really focus on data-crunching. Uninterrupted time and a strong cup of coffee are essential for doing long-term analysis.

Campaign Performance Reports are great for identifying long- and short-term trends as seasons shift or for changes in demand by brand. We just wrapped up our winter sale, so this is a great time for me to run an Ad Performance Report to analyze which versions of ad copy had the strongest clickthrough rates for future reference. Finally, Google Insights for Search is a fun tool. It’s a great way to connect with our buyers by discussing big-picture trends with the brands we carry. We can look at AdWords Campaign performance and try to tie it back to general search volume in the marketplace and identify product searches on the rise. In short, given our metrics focus, AdWords gives me the information I need to make decisions about specific keywords, bids, and our overall spend.

There are typically the same few folks hanging out at the office this late. We’ll exchange some pleasantries, and as the lights get turned off I’ll shut down my computer.

When I earned an undergraduate degree in marketing and cultural anthropology, I had only a vague idea how I was going to create a career with behavioral and analytical activities. It turns out online marketing is an exciting mix of real-time data and customer service. AdWords lets me manage campaigns very efficiently, so I have time to dig deeper and do the strategic analysis that makes this job about much more than just meeting revenue goals.

Finally, I picked Park City because it’s more than a ski town. Here fanatical skiers, trail runners, bikers, snowboarders and climbers can live year round and still have a meaningful career. I’ll always be grateful to companies like Backcountry and Google for making this possible: Backcountry for fostering the passions of the outdoor enthusiast, and Google for innovation in creating the forums and tools that really work for us.

Originally posted here:
Ode to AdWords

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Today, we’re announcing the next generation of ad serving technology for online publishers — DoubleClick for Publishers (DFP).

For the past few years, we’ve been investing in a suite of solutions — AdSense, ad-serving technology and the DoubleClick Ad Exchange — to help online publishers make the most money possible from their content, whether they sell advertising directly through their own sales force, through an ad network such as AdSense, or a combination of both.

For major online publishers — including social networks and online communities, entertainment sites, e-commerce sites and news sites — managing, delivering and measuring the performance of ads on their websites can be a hugely complicated process. A publisher’s ability to manage this process can have a significant impact on how much money they make from their online content.

Imagine you’re a major online publisher with a popular global surfing website and an ad sales team. Every second of every day, you have difficult decisions about what ads to show and how to measure their relative performance. For example:

  • In the same ad space, a surfboard wax advertiser may want to run a static image ad for your Australian readers, while an airline offering flights to Hawaii may want to run an expandable interactive ad for your American readers.
  • A fast-food restaurant wants to run their burger ads before noon and their pizza ads in the afternoon.
  • You’ve sold 10 different surfboard makers a million ad slots at slightly different prices; now you have to allocate them across your various webpages to fulfill all these orders over the next two weeks.
  • One of your surfing tournament reviews is linked to by a popular news site and you have a surge in traffic. Your sales team couldn’t predict this, so you’re potentially left without any ads for thousands of readers. You want to fill this ad space by selling it via an ad network which has ads available.

This is really just scratching the surface. Managing ad space can involve faxes, emailed orders, the manual scheduling of different ad campaigns across multiple sites and difficult decisions about how to allocate ad space most effectively.

Major online publishers use ad serving technology to manage the complex process of how and when the ads they have sold appear on their websites. In recent years, we’ve invested significantly in our ad serving products — DoubleClick’s DART for Publishers for large publishers and Google Ad Manager for growing publishers. Thousands of major online publishers use these products to serve billions of ad impressions every day.

But we see an opportunity to improve ad serving even further by combining Google’s technology and infrastructure with DoubleClick’s display advertising and ad serving experience. Since we acquired DoubleClick in March 2008, our engineering and product teams have been working with online publishers to tackle the obstacles that prevent them from maximizing revenues from their websites.

The upgraded DFP includes a wide variety of features that will help publishers to get the most value out of their online content:

  • A new interface that has been completely redesigned to save time and reduce errors.
  • Far more detailed reporting and forecasting data to help publishers understand where their revenue is coming from and what ads are most valuable.
  • Sophisticated algorithms that automatically improve ad performance and delivery.
  • A new, open, public API which enables publishers to build and integrate their own apps with DFP, or integrate apps created for DFP by a growing third-party developer community (apps under development today include sales, order management and workflow tools).
  • Integration with the new DoubleClick Ad Exchange’s “dynamic allocation” feature, which maximizes revenue by enabling publishers to open up their ad space to bids from multiple ad networks. Dynamic allocation is described in this document [PDF].

DFP comes in two flavors, tailored for different publishers’ needs: DoubleClick for Publishers, for the largest online publishers, and DFP Small Business, a simple, free version designed for growing online publishers. We’ll be upgrading current DART for Publishers publishers to DoubleClick for Publishers over the next year as we continue to add features and modules, and we’ll be moving Google Ad Manager customers to DFP Small Business in the coming weeks.

To reflect our continued investment in DoubleClick’s products, as well as the central role of DoubleClick’s technology products within Google’s display advertising business, we’re also today unveiling some changes to the DoubleClick logos — including typeset changes, incorporating a new “by Google” theme and retiring the “DART” brand.



The upgraded DoubleClick for Publishers is a perfect example of our continuing innovation in this area, and we believe that it will add significant value to online publishers’ content. You can read more about the features of the upgraded DFP on the DoubleClick blog and on the DFP website.

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The next generation of ad serving for online publishers

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All website owners need to pay for the costs of creating content and making it available online. Whether delivering entertainment, products, news, services, social networking or opinions, they need to pay their way by selling advertising or charging their users.

Website owners, or “online publishers,” span the range from individual bloggers to multinational companies. If they sell advertising, they can do this directly themselves, via their own sales force. Alternatively, they can use an ad network to place ads on the pages of their website. Many publishers use a combination of these methods if they can’t sell all their ad space themselves (for example, a publisher may have an unpredicted surge in traffic — and therefore ad space — resulting from a popular post, or from a major website linking to them).

We have a long history of helping online publishers make money from their websites. We wanted to update you on our continuing work in this area, and how Google’s newer products can provide real and significant results for clients.

We currently have three main products that work together to help online publishers of all sizes and types maximize their revenue.

AdSense
AdSense, launched in 2003, places highly relevant ads on our partners’ websites, who share in the ad revenue. In 2009, our AdSense partners, comprising over a million large and small publishers, earned over $5.2 billion through AdSense.

AdSense is designed to help online publishers get the most revenue possible for their ad space, without having to directly manage advertiser relationships. When a publisher enables AdSense on their site, Google automatically maximizes the publisher’s revenues every time a page loads. It does this in real time, by selecting the most valuable ad from AdWords advertisers and a large pool of other competing ad networks and buyers.

Ad serving
Larger publishers with their own ad sales teams use our ad serving products (like DoubleClick’s DFP or Google Ad Manager) to serve the most valuable ad that they’ve sold directly to advertisers or ad agencies. DFP is the industry’s leading ad serving platform that powers the advertising businesses of the largest online publishers, while Google Ad Manager is designed to meet the needs of growing online publishers.

Our ad serving products are a key focus for us and we’re continuing to make significant investments in this area. You can read about some of our DFP customers here and some of our Google Ad Manager customers here.

DoubleClick Ad Exchange
DoubleClick Ad Exchange is a real-time auction marketplace for display ad space — it includes ad networks on one side, and major online publishers on the other. Publishers are in complete control of which networks they allow to bid, what ads can appear on their sites and which ad space they make available.

Maximizing revenue across various ad networks is sometimes called “yield management.” For major online publishers, the Ad Exchange offers an easy-to-use yield management solution — it selects the highest paying ad from across multiple, competing ad networks, in real time. However, the Ad Exchange goes further than simple “yield management” to provide a more complete revenue maximization solution.

Through a unique process called “dynamic allocation,” it also compares — again, in real time — the value of the highest-paying ad in the Ad Exchange with any ads that the publisher has entered into their ad server (such as ad network deals) and chooses the highest paying one. By definition, the Ad Exchange only serves ads when it can offer a higher price for ad space. In fact, analysis shows that the average price a publisher receives for ad space sold through the Ad Exchange is over 130% higher than the average price of ad space sold directly to ad networks and other third parties. (Of course, while similar, the ad space being compared is not identical.)

A continuing effort
Today’s online publishers, large and small, operate in a complicated and fragmented advertising environment. We’re focused on developing a full suite of technology products — such as AdSense, ad serving products and DoubleClick Ad Exchange — that can maximize all publishers’ advertising revenues. We’re also working to bring new advertisers to online advertising and make the process easier for them, to grow the advertising pie for everyone.

By doing this, we hope to help all publishers fund their websites, which enables them to create a wide variety of online content for all Internet users.

If you’re interested in the ins-and-outs of our approach to maximizing revenue for publishers, you can read more in this document.

Source:
Our approach to maximizing advertising revenue for online publishers

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