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Why retailers might start boosting their Google display ad budgets

by | Oct 5, 2015 | Advertising & Marketing

By Zak Stambor Managing Editor, Internet Retailer
Google says that marketers will only pay when an advertiser’s entire ad is visible on a user’s screen. While Facebook and Twitter offer similar guarantees, they only do so if advertisers pay a premium for their ads.
Google Inc. is making a major play for advertisers’ dollars by saying that marketers will only pay when an advertiser’s entire display ad is visible on a user’s screen.
While Google has given advertisers on the Google Display Network the option to pay only when their entire ad is displayed on a user’s screen since 2013, it is now making 100% visibility the default for all CPM, or cost per 1,000 impressions, campaigns. In doing so, it is surpassing the guarantees offered by Facebook Inc. and Twitter Inc., both of which recently rolled out the option for advertisers to a pay a premium to ensure they only pay when shoppers see their ads.
Google’s own research shows that 56% of display ads are never seen by consumers because they are below the fold, scrolled out of view or in a background tab. The change suggests advertisers will get more out of the ads they place through the Google Display Network. Google says more than 2 million sites are part of its network.
“This means your media dollars will only be spent where they can have impact,” Google writes in a blog post.
A Google spokeswoman says the move shouldn’t affect ad rates because ad space on the network is sold via auction. But if the move leads to increased demand from marketers seeking a guarantee that consumers actually see their ads, prices could rise.
Google uses Active View, its viewability measurement solution, to ensure that consumers see the ads. The tools works by examining the portion of the ad that appears on a consumer’s screen and how long the portion of the ad is visible.
Google says the new standard will take effect in the next few months.
200 of the 1,000 largest online retailers in North America cite Google as one of their online marketing vendors, according to Internet Retailer 2015 Leading Vendors to the Top 1000. That makes it the top vendor in the category.