Filed under: adwords, content search, google, google content, google sign in, internet demographics, search engine marketing, the future of search engine marketing | Tags: adwords, contextual search, demographic targeting, google, google content
The adwords blog has announced the launch of a demographic bidding beta test and is offering the chance for advertisers in the UK and the US to sign up for the trial. Reading into the release the targeting is only going to be available on the content network placement network and is dependent on the publisher site having the capability to provide the information on the users. If the site has this information, more often than not through a sign in system, then it will be shared anonymously to Google and the appropriate ads.
From the detail in this article the benefits of this system over MSN’s own demographic targeting system is that the system will allow you to up weight your bids by a higher percentage (MSN’s limit is 150%) and that you will also be able to choose not to show your ads to certain audiences. This is certainly an advance on MSN but the impact of it will be limited by the reliance on the publisher site and the fact that the targeting wont apply to the main Google search results, where it could have most benefit. This is obviously due to the fact that you dont need to be signed in to Google to use it although they could have implemented it for those people who have a Google account and perform searches whilst signed in. Maybe that will be in the next release, I suppose we’ll have to wait and see.
With the launch of their new product, pay per action, is google encroaching on the affiliate marketplace?
It was an obvious step to make in the evolution of search, it started as a cost per impression based marketing (and in some markets still is), then move to a cost per click metric and now cost per conversion, taking the product further and further down the buying cycle. This obviously removes the majority of the risk for the advertiser and a lot of businesses will welcome the move. I mean, why not? its what the industry would call a “no brainer” if you are only paying for the sales you receive and you know your acquisition costs it is business without the risk.
Google’s motives are a little less clear. Obviously they will steal some market from affiliate channels by launching this, they will also potentially attract more advertisers who dont want the limited risk of PPC. Due to one of the caveats involved (you must use google analytics to track) it will also increase the user base for its analytics tool so a double benefit to them.
On the limitations side you must be paying for an action of which you recieve >500 of in the last 30 days. This limits smaller businesses and also means it may not be applicable to larger transactions or those further down the buying cycle. A car insurance campaign for example might not be receiveing 300 sales in 30 days but it will most likely be getting 300 quotes. They therefore may be willing to pay a set fee for each quote based on an average conversion to sale and their acquisition targets.
It will be interesting to see if this product takes off and how effective it is. Is it the next big thing or just another one of those products google wants to be the first to launch but will never take off?
