Google’s Top Secret Advertising Network
written by John Chow
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Almost everyone knows Google owns the AdSense network. Google AdSense has been credited with bringing the Internet back to life after the dot com burst of 2001. Some people may even know about AdSense for domain. This is Google’s network for handling advertising for large domain name holders. Recently, Google started a new ad network but is not telling anyone about it – the Google Display Advertising Network.
The Google Display Advertising Network was created so Google can go after Fortune 1000 companies, which buy advertising to build a brand more than to sell a product. Google already dominates text and CPC ads so going after display and video ads is the next logical step. Google offers display and video ads to AdSense publishers on CPC and CPM format already. However, the formation of the Display Advertising Network is a clear signal that Google really want to push this forward.
How do you join the Google Display Advertising Network? You can’t. Google won’t even acknowledge it exists. You won’t find anything written about it in any of Google’s web properties. The only way to get into the display network is if Google invites you, which is how I found out about it.
Google has been hand-selecting sites (no word on how many sites has been chosen) that they want to put in front of Fortune 1000 companies. The goal being to sell these big companies display and video ads at a very high CPM – unlike the AdSense network, the display network is 100% CPM based.
While Google won’t tell normal AdSense publishers what the revenue split on their account is, they are much more open with the display network. As a matter fact, every display network members negotiates a flat CPM rate with Google. The contracts are one year long and publishers have to guarantee Google that they will provide a minimum amount of ad inventory each month. Publishers can serve more than the minimum amount and still receive the same CPM rate for the overage.
Reporting by the display network is currently via weekly emails from Google. The information is extremely limited. The only information shown is your weekly ad impressions and page views. Take that ad impression figure, multiply it by your CPM rate and you’ll have how much you made.
I am not allowed to reveal CPM or any financial data of the Google Display Advertising Network. However, I can tell you that the 300×250 display network ad running on The TechZone is my most profitable Google ad.
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Interesting information and I agree with you, its simple logic that Google wants to go behind those powerhouse as they are the kings on online advertising. Congrats on yet another invitation from G and thanks for your always knowledgeable input on what seems to work and what doesn’t.
Ed
This information is really interesting. But, I am still not eligible to join into the Display network. John, you are right. Only those “big” companies can have such chance.
Cool - the more advertising options the better, as some advertising types work better on some sites, while others tank.
Very interesting, I hope they don’t give you the boot for talking about it!
[...] You can’t join though, it’s by Google invitation only, according to this post by John Chow, who runs The TechZone which is in this network. Apparently you negotiate a flat CPM rate with Google, and it works from there. [...]
[...] Molto interessante anche se elitario. Un sito su cui questo sistema risulta già attivo è The Tech Zone gestito da John Chow Loading … Prendi i feed | var staf_confirmtext = ‘Mail inviata’ #stafBlock { position: absolute !important; z-index: 100000; display: none; width: 350px; height: 350px; } #stafForm { background-color: #ffffff; border: 1px solid #c6c6c6; padding: 5px; margin:0; } #stafForm h2 { margin: 0; } #stafForm input, #stafForm label, #stafForm h2 { font-family: ‘Arial’, Verdana, Sans-Serif; font-size: 12px; color: #222222; } #stafForm input { width: 150px; height: 20px; margin-top: 5px; border: 1px solid #ccc; } #stafForm label { float: left; display: block; width: 150px; line-height: 16px; } #stafClose { float: right; margin-right: 5px; } x [...]
Well John. Congratulations, not for being invited by Google, but for running successful websites that generate so much traffic, and also for publishing so much quality content, non-stop :-).
“The contracts are one year long”
Isn’t that ‘forever’ in Internet time?
Does Google Have a Secret Advertising Network?
According to John Chow, indeed they do. It’s called the Google Display Advertising Network, and it’s by invitation only. Google is targeting the service at large corporations, who are often interested in advertising for branding purposes than getting…
Google lleva un sistema de publicidad "secreto"
Según un artículo de John Chow, Google lleva un sistema de publicidad ’secreto’, llamado "Google Display Advertising Network", paralelo a su conocido Adsense, al que sólo se puede acceder por invitación expresa de la compañía. Visto…
What does CPM stand for?
@Lawrence:
CPM - Cost Per 1000 (impressions). M is a roman thousand.
Other useful terms to know are: CPA - Cost Per Action (click) and CPC - Cost Per Conversion (such as making a purchase)
All are different systems for figuring out just how much money is involved with ads.
This secret advertisers group isn’t the Adsense Premium program?
[...] John Chow has broken the story that Google has a ’secret’ CPM advertising network called the ‘Google Display Advertising Network’ which is an invitation only impression based ad network for high profile advertisers and a select group of publishers. [...]
What is your source for this information? I am very interested to know where it came from….
Com - No this is not the AdSense Premium program. That has been around since AdSense started.
Jonathan - I am the source. Google invited me to join back in September. It “officially” started on Oct 1st.
Wow. Thats pretty cool. Congratulations.
[...] Google’s Top Secret Advertising Network A year seems like WAY too long to negotiate pricing, but will be fun to watch this burgeoning beta test by Google for Display Ads (CPM only). (tags: CPM google advertising) [...]
[...] Here it comes. [...]
Googles geheimes Werbenetzwerk
Fast liest es sich wie die Beschreibung eines Geheimbundes, die Verschwrung der Super-Advertiser: John Chow schreibt ber ein weithin unbekanntes Werbenetzwerk von Google, bei dem Fortune 1000 Firmen…
Wasn’t sure how to add this to your comments section, however I was just reading at problogger and it appears your site was mentioned.
[...] Darren Rowse points to a post by John Chow that reveals details of an ad network that Google uses for Fortune 1000 companies. The Google Display Advertising Network was created so Google can go after Fortune 1000 companies, which buy advertising to build a brand more than to sell a product…The goal being to sell these big companies display and video ads at a very high CPM – unlike the AdSense network, the display network is 100% CPM based. [...]
[...] As first reported by John Chow and since reported by Darren Rowse, Google has a top secret advertising program called Google Display Advertising Network. [...]
[...] John Chow has written on his blog about Google’s unknown ad network. No, we’re not talking about a new feature of Adsense. This one is by invitation only and to selected publishers. John couldn’t give any details about the CPM or financial data but did say that publishers negotiate a year long contract directly with Google on CPM rates and have to give guarantees on monthly ad inventory minimums. Ad formats are video and image. [...]
How does the revenue/CPM compare to what you can get from ad networks like Valueclick or Advertising.com?
So who’s doing this graphical ad placement now? Is this something Yahoo or ValueClick does?
[...] John Chow was invited to join the Google Display Advertising Network in September. This is a new — but secret — Google advertising network which is built around brand imaging rather than selling products. Having a brand image is not a “have or have not” proposition. Everyone has one. The problem is that you might have more than one brand image, depending on whom you ask. You know yourself, but depending on whom you talk to, others may think you’re something completely different. That’s when a brand image company like Brand Identity Guru Inc. can help. Brand Identity Guru Inc. is a brand image company that identifies your most powerful brand image and then works to make it your only brand image. BrandIdentityGuru.com [...]
John: Ah I see, thank you.
i dont see a 300×250 display add on thetechzone right now (3:19pm ET 11/29/06), i see text ad. maybe that’s because it’s not 100% display network. i thought google made the display ads compete with the text-based CPC ads in the adrank algo in order to determine which monetizing the best - and that the websites/publishers had not say in terms of what format of ad was displayed.
Invites you ? Let me guess, I think this outdoor or Display advertising network would be connected to your mobile Garmin or anything electronic display on your car, once you pass by a certain IP zone or Mobile cell Umbrella network, you will get some cool ads pushed to you as your local pizzeria or local hotels, nightclubs and events.
Add to this display system that it can work on any car front and back glasses, so anyone who passes by you can see the displayed Ads instead of people sitting inside the car.
Cool Google, but that’s another idea that flies far away from my hand unless you call me to tell you more.
Mr Juggles - It kills Valueclick or Advertising.com
mark - When there is no display or video ads to show, Google shows a normal AdSense ad. However I still get my contracted CPM for it - even if the AdSense ad is CPC.
[...] John Chow describes the Google Display Advertising Network: While Google won’t tell normal AdSense publishers what the revenue split on their account is, they are much more open with the display network. As a matter fact, every display network members negotiates a flat CPM rate with Google. The contracts are one year long and publishers have to guarantee Google that they will provide a minimum amount of ad inventory each month. Publishers can serve more than the minimum amount and still receive the same CPM rate for the overage. [...]
Just had to clarify something from an earlier comment here that no one else had corrected yet:
You have those backwards. Cost Per Action means the user doing something like filling out a form or making a purchase, and CPC is Cost Per Click, a la Adsense.
[...] John Chow broke the story about Google’s Premium Network. It’s been picked up now by all the usual suspects, so I’ll post what I know. [...]
[...] So there is a secret Google advertising network and only elite publisher get to play, according to John Chow. The Google Display Advertising Network was created so Google can go after Fortune 1000 companies, which buy advertising to build a brand more than to sell a product. Google already dominates text and CPC ads so going after display and video ads is the next logical step. Google offers display and video ads to AdSense publishers on CPC and CPM format already. However, the formation of the Display Advertising Network is a clear signal that Google really want to push this forward. [...]
[...] Posted under AdSense on November 29, 2006 9:39 pm John Chow points out that Google is secretly testing an impression based Ad Network called Google Display Advertising. This is something similar to Feedburner’s FAN, Tribal Fusion, Double Click or Casale Media and plans to capture advertisers who are planning build a brand name rather than sell products. [...]
who’s right?
cpc = cost per click
cpa = cost per acquisition
or what the OP said?
and don’t you need permission from GM to use the Corvette in this manner?
CPC = Cost Per Click
CPA = Cost Per Action
And I do have permission to use the Corvette. That photo was supplied to me by GM Media Relations.
[...] Darren Rowse points to a post by John Chow that reveals details of an ad network that Google uses for Fortune 1000 companies. The Google Display Advertising Network was created so Google can go after Fortune 1000 companies, which buy advertising to build a brand more than to sell a product…The goal being to sell these big companies display and video ads at a very high CPM – unlike the AdSense network, the display network is 100% CPM based. [...]
[...] John Chow’s blog details a new initiative by Google to expand their offerings to advertisers who are interested in CPM ad inventory. Specifically, Google wants to get their feet in the brand dollars which are shifting online and will represent the big kahuna of online ad dollars in the future. [...]
[...] Read more details courtesy of John Chow. [...]
Interesting story John. I have written a follow-up on my blog having had some direct experience with Google back in Q1 when Google was conducting research into various publisher ad servers. Ours was one of the products they were looking at and they were in the build or buy mode. It would make sense that by now they would be in a beta stage implementation of a network model. http://www.arikaufman.com
[...] John Chow dot Com: Google’s Top Secret Advertising Network [...]
Why is it more economically profitable for you than Valueclick or Advertising.com? Are they just giving you more of the advertisers pie?
“Google offers display and video ads to AdSense publishers on CPC and CPM format already”
They do? I didn’t realize that. I don’t understand how this is any different then.
[...] Google will continue to build out their advertising network because that is where they make their money. They just released the secret ad network which is by invite only and targets large corporate websites. They are signing exclusive deals with web properties like Myspace. Additionally, they will continue to enter all of the different territories on the internet, like Google Maps, Google Books, etc. But their primary mission will no longer be the search engine itself. [...]
[...] I picked this interesting piece of news up at Perclickforums, which is from an original post over on John Chows blog. A few key points from the post; Recently, Google started a new ad network but is not telling anyone about it – the Google Display Advertising Network. The Google Display Advertising Network was created so Google can go after Fortune 1000 companies, which buy advertising to build a brand more than to sell a product. [...]
John Battelle received this when he asked Google about a new Display Advertising Network:
“We are not testing or developing a new ad network. The existing display advertising network has been available for over 2 years, and most recently we introduced click-to-play video ads. We are always exploring ways to offer advertisers and publishers more flexibility and control over ad inventory.”
http://battellemedia.com/archives/003133.php
John - I second Kristin Choi’s question - are you saying that from a competitive standpoint it will hurt Valueclick and Ad.com, or that Google’s ad network is actually, currently making you much more money from your inventory than those two companies can?
[...] We all know about the Google Adsense advertising program and the Adsense for parked domain names. But Google has more to offer their top Adsense publishers (besides the Google Adsense premium program). Jon Chow discloses details about the secret Google Display Advertising Network that is targeted at Fortune 1000 companies. [...]
[...] [via Johnchow] [...]