FOOA and Google Ad Models
Kim Malone (Google) ‘Adapting Advertising Models to an Evolving Web Experience’
There have been a lot of questions about different pricing models for different advertisers/marketing objectives. There’s no one model that is right
There’s awareness, consideration and action in a consumer journey.
As you move down this path, marketing objective moves from generating demand to fulfilling demand. Google have put together a set of pricing models that allow you to do the right thing at each stage. At the beginning you are looking for eyeballs, using display, video and text (CPM), then you move to CPC model, you are trying to get them to learn more. Finally you have the CPA (new model in beta). Most is in the content network. It would be good if the web was magic and you could skip the first 2, but it is not and you need to be aware of where you are and what you are getting the user to do.
(skipped the stuff on case studies..should be available when presentation online)
So how does CPA work?
Advertisers set a cost per action for a specific action. website owner chooses advertisers ad category and places it on their site. When user clicks and competes, then the advertiser pays.
To use CPA, you need to be sure your audience is on the right place on the customer journey.
Audience Q&A
There was obviously a lot of questions in the audience, although some were pushed past by the facilitator and discussions not really allowed. fair to the rest of us, not necessarily fair to the questioner.
Q: inline text ads? you are planning one of these which does not frame the ads. Why are you changing the model?
A: in the mockup I have seen, it is clear, but We welcome feedback.
Q: any numbers on difference on conversion rates btw search and content networks?
A: in aggregate we have done a lot of studies and the conversion is about the same on average. we are working on a way to make it clear to advertisers where their conversions are coming from.
Q: With mechanical bulls (this was the hypothetical case study for CPA) you went straight to CPA..but how do you know when to go to CPA.
A: (in order to assess which model you use you have to know your audience) what are you trying to sell? are you building a brand or do you have 3 mechanical bulls to sell. Is it ongoing or just one offs. Ongoing, then you need to brand.
Q: Will CPA be by categories or keywords..how granular is it
A: the product is still evolving. we want people to select broad and drill down.
Q: how can you confirm the payment and the action?
A: you need to be able to see the purchase; (to get on our system) it has to be set up with the tracking. If you buy within 30 days we will know
Q: any plans for a mixed model?
A: it;s logical to assume we will consider that; no immediate plans. we iterate quickly so send us your feedback.
Q: any examples of what does better in content vs search?
A: the examples I picked did better in content. Especially in consideration phase of buying cycle.
Q: why no videos in CPA?
A: when we launch something we don’t launch with everything; we are trying and iterating and will improve overtime.
Q: video advertising inside video content? can you do it?
A: great idea watch this space! (there was a large hint here that they will be doing something, as she mentioned that she would be shot if she went on!)
Q: on the CPA example. Will google get into returns.
A: this is a transaction…btw the advertiser and purchase. we will not get involved. (err….does anyone do this for tv or print? I found this question strange, as you don’t get your money back for other channels)
Q: can we skip CPM and go to CPC??
A: we don’t manage the campaign, need to know your product and understand what makes sense. we provide pricing models and case studies. (again, as with one of the previous questions, there seem to be a desire to be told exactly what to do, although this was set up as three models that can be used at different stages of the brand/product journey)
Q: Blogs..using adsense. for CPA can publishers encourage people to click as they do not pay for click?
A: don’t think we will launch out of the gate like that you have a good point but we need to iterate.
Q: what is your feeling on domain spam?
A: in the content network we do require that publishers have content. Adsense for domains, we do not allow advertisers to drive traffic nor do we put it in the network…a better user experience than getting an error page. We are removing from content network publishers with no content. we monitor the quality very carefully, we do an audit every week. We have automated checks and manual audits.
Q: before someone clicks on an ad can the clicker know what the sell basis is CPM or CPC
A: not on CPM or CPC, but probably more visible on CPA.
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