Google Gets a New Real-Time Infrastructure for Display Ads

Google just announced that it is acquiring Teracent, a provider of "intelligent dynamic display advertising." The company considers itself a pioneer in dynamic ad serving and optimization solutions. Google appears to agree.

Teracent provides machine-learning algorithms, which can create customized display ads based on thousands of different creative elements. The infrastructure Teracent brings to the table allows for real-time assembly of dynamic ads. It's designed to determine the optimal selection of each ad element and return it based on the objectives of the campaign.

"As you know, we've been busy releasing new features and products to help improve display advertising on the web for everyone," Google says. "We believe that Teracent's technology fits neatly into these efforts."

Google says the one on the right was created with Teracent's technology.

"Teracent's technology can pick and choose from literally thousands of creative elements of a display ad in real-time — tweaking images, products, messages or colors," the company adds. "These elements can be optimized depending on factors like geographic location, language, the content of the website, the time of day or the past performance of different ads."

"The infrastructure, opportunities and technical depth that Google will provide for Teracent customers means a future of product innovation for Teracent's dynamic ad optimization platform," Teracent says in their own announcement.

Google says the technology can help advertisers get better results from their display ad campaigns, while enabling publishers to make more money from their ad space.

Teracent's technology will be available to all Google advertisers running display ads, including DoubleClick clients. The deal is expected to close this quarter, subject to various, but unnamed closing conditions.

Integration details will be announced after the deal is officially closed. Financial terms were not disclosed.

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Advertisers Scammed By Invisible Impressions

There are sites out there that may be selling you ads that consumers aren't seeing. We're not talking about just a lack of traffic to the pages they appear on. There is a lack of traffic because the pages are simply invisible to viewers, making them essentially worthless.

A report from the Wall Street Journal says that even large corporations like Kraft foods, Greyhound Lines, and Capital One Financial are among the victims of such scams.

The sites use code, which makes it look to marketers like their ads have been appearing, but they do not appear to users. The report, based on research from Ben Edelman, cites MyToursInfo.com and MyProfilePimp.com as a couple of offending sites.

"The Web sites can get away with it, he says, because online advertisers don't always audit their campaigns for proof their ads are appearing," writes WSJ's Emily Steel. "It isn't clear how common these ads are or how much they cost marketers."

So how is an advertiser to know who to trust? One solution mentioned in the report is to buy ads based on attaining a certain number of clicks as well as impressions. In such a scenario, a site would have no benefit to pull off such a scam. Another possible solution is to be more directly involved with who you are advertising with.

"Advertisers often buy display ads based on the number of times they are loaded onto a page, rather than the number of clicks they get," says Steel. "Over the past, year, an increasing number of scams have sought to take advantage of that pricing system as advertisers have started buying more of their online ads via middlemen called ad networks, instead of directly from the Web sites themselves. These networks sell ad space at cheap rates across thousands of sites, and they don't always weed out illegitimate players."

Online advertising is having a big year. A number of recent reports show an optimistic viewpoint for the industry. There is no reason why that shouldn't continue as long as advertisers take responsibility for monitoring and stay involved with their campaigns.

YouTube Videos in AdSense Could Drive Clicks

Google has decided to start including promoted YouTube videos in AdSense. This means that these videos are now an available ad unit that can be displayed on AdSense publisher sites.

YouTube promoted videos include a thumbnail image with three lines of text, and when clicked, they take the user to a video or a channel on YouTube, so it's not like there will be full-sized YouTube videos in AdSense ad spots on publisher sites.

"Extending Promoted Videos to AdSense sites will enable these content producers to broaden their reach, while providing you with another way to earn from your ad space," says Arlene Lee of Google's Inside AdSense team. "At this time, these ads are only available in English to US publishers, but we're looking forward to expanding to additional regions and languages in the future."

The promoted videos are contextually targeted to AdSense publisher pages, and publishers will earn from them on a cost-per-click basis. They are available in the following formats:

- 300x250 Medium Rectangle
- 336x280 Large Rectangle
- 728x90 Leaderboard
- 250x250 Square
- 200x200 Small Square

"Just like other ads, Promoted Videos compete in our standard ad auction, so they'll help drive up competition among advertisers bidding to appear on your pages," says Lee. "When a Promoted Video wins the ad auction, it'll be shown alone in one of the eligible ad formats."

Videos of course have to meet YouTube's advertising guidelines and terms of use, as well as community guidelines. Publishers can prevent promoted videos from appearing on their sites by adding "youtube.com" to their competitive ad filter list. This will block all YouTube content.

It should be noted that the addition of promoted YouTube videos to AdSense has nothing to do with Google's video ads offering.

YouTube promoted videos could be a good way to increase AdSense clicks, because the very nature of them draws the user's attention to watch a video, and at the world's most popular online video site. Plus the videos should be relevant to the content of the page. This could be a big money maker for AdSense publishers. It should be big for people promoting their videos as well.

Google Unleashes DoubleClick Ad Exchange

Google has announced the DoubleClick Ad Exchange, which it refers to as a real-time marketplace for helping online publishers and ad networks/agencies buy and sell display ad space. Prices in the marketplace are set in a real-time auction.

Google says it has three principles for its approach to display advertising:

1. Simplify the system for buying and selling display ads: For example, our DoubleClick ad serving products help advertisers and publishers manage campaigns and ad formats across thousands of websites and from thousands of advertisers.

2. Deliver better performance that advertisers and agencies can measure: We're building a host of new features to help advertisers to run display ad campaigns across the Google Content Network (comprising hundreds of thousands of AdSense partner sites) and on YouTube. We're also developing better measurement and reporting technology so they can figure out what's working and what's not.

3. Open up the ecosystem: We want to democratize access to display advertising and make it accessible and open, like search advertising. We recently launched the Display Ad Builder to help businesses easily set up and run display ad campaigns. 80% of advertisers who use that product have never run a display ad campaign before.

AdWords advertisers can run ads with the same AdWords interface through the exchange. Ad Exchange sites are considered part of the Google Content Network. Ad Exchange placements will appear like any other Conent Network Placement in AdWords reports. Users can still use the Placement Performance Report to see where their ads have run, and which ones performed best. Google does note, however, that Ad Exchange sites can choose to remain anonymous, and in cases like that, the site will appear in your reports with an anonymized label like "123456.anonymous.google." You have the power to exclude these placements though.
 

Google says AdSense publishers will also benefit from more advertisers coming through the exchange. The company recently announced plans to give AdSense publishers a new way to generate revenue by allowing multiple Google-certified ad networks to compete for display ad space on their sites. This is related to the Ad Exchange announcement. The Google-certified ad network capability is powered by the DoubleClick Ad Exchange.

"Certified ad networks are Ad Exchange participants who have gone through an additional certification process in order to be able to bid for your ad space through AdSense," Google says. "We call this feature 'yield management', because it offers you the most revenue for each ad that shows on your site in real time, regardless of whether it's Google or another certified party who can offer you the highest bid."

Publishers using the Ad Exchange can use real-time data and bids to allocate ad space that pays the most at any particular second. They get access to more advertisers, Google manages billing and payments from networks, so publishers get one monthly payment.

Ad networks and agencies get access to more publishers, more ad space, real-time bidding, and a new API, which lets them integrate their own functionality and systems when using the Ad Exchange.

Google's move is largely seen as its way of cutting into Yahoo's share of the display advertising pie. This is one area where Yahoo has been quite successful, as Google has dominated the text ad market.

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