CPC-based Site Targeting Tests By Google

Google announced plans to initiate a test of CPC-based ads using site targeting.

Site targeting is a feature that allows advertisers to choose individual sites in the content network where they want their ads to appear. Currently, advertisers using site targeting place bids on a cost-per-thousand impressions (CPM) basis. In March, we plan to begin testing a new site targeting feature to increase the flexibility and control advertisers have with site-targeted campaigns: cost-per-click (CPC) bidding.

Search Engine Watch also comments on the same.
Google expects the CPC pricing to appeal to conversion-oriented, direct response advertisers who are focused on clicks, and track metrics such as sales, leads or sign-ups. That may get more advertisers interested in the tool, since many have tried site targeting on a CPM basis and found it lacking in ROI. Site targeting is popular with advertisers as a branding buy, when they want to get in front of the readers of a given site.

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