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Google Allows Advertisers to Pay by Viewable Impression

Posted on Tuesday, December 17th, 2013 by Print This Post Print This Post

Categories - Display, Featured, News

Viewable Impressions

Google recently announced that advertisers can now pay for display ads only when they have been viewed by a user.  The new option, called viewable CPM, applies to all ads across the Google Display Network. This is a huge win for advertisers, who have traditionally paid each time their ads are “served,” regardless of whether or not the ad was seen by the user. Viewable CPM is made possible by Google’s Active View technology, a measurement solution that detects an ad’s viewability using a JavaScript tag that records the amount of time an ad has been viewed.  As a standard, Google considers the ad to have been viewed if it is “at least 50% viewable for a minimum of one second.” Google will also provide metrics on how many viewable impressions each campaign received, providing more meaningful metrics that can drive better decision-making for future campaigns.

Rick Egan, VP, Group Account Director, argues that Google’s move “makes a lot of sense.  They are trying to shake up the traditional display networks to get more people to move their budget dollars to them. Advertisers love the idea of cost per viewable impression instead of CPM. Many smaller advertisers understand the fact that if they are not doing direct buys, then their ads are not going to show in a spot that is going to influence a buying decision or make people aware of their brand. If a cost per viewable impression model is more profitable, then publishers will also abandon the CPM models where the DSPs keep the lion’s share of the fee for a more democratic model in which they can more greatly profit.”

While Google’s new viewable impressions option may appear to be exceedingly generous to advertisers, the new model will entice more advertisers to spend money on display ads, ultimately benefiting Google’s bottom line as well. If this new model becomes successful, it will be interesting to see if the other search engines follow suit and start to offer similar options in the future.

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