Google introduces dual bidding on the advertiser network

By Steve Malone

Posted on 25 Nov 2005 at 11:11

After some resistance, Google has bowed to advertiser pressure and has introduced a system of separate content bidding for Google AdWords. Advertisers can now choose to bid different prices for keywords depending on whether the ad appears on either the search engine or content sites. Previously, the single keyword bid by advertisers was applied to their ads on both search and content pages.

The move brings Google into line with Yahoo! that has run a similar dual pricing strategy for some time. It allows advertisers to compare the effectiveness of their promotions on the different mediums and vary the prices they are willing to bid accordingly. For example some advertisers might prefer to target content sites specific to the product they are selling while others may wish to attract potential buyers while they are still in the 'research mode' - i.e. when using the search engine to find product.

Google says that the new content bidding mechanism will be available to advertisers through the AdWords campaign management interface and is available to all advertisers worldwide. It also says the new service will not affect the site targeting feature, which is the tool that allows advertisers to target specific content sites in the Google network.

In addition, the minimum bid for content is now a static $.01 (in the US).