Monday, June 06, 2005

Google AdSense Image Ads Versus Text Ads

In December 2004, Google announced a possible expansion to its image ads program within AdSense. This article gives an overview of image ads and provides information to assist you in determining whether image ads are right for you.

To begin, in May 2004, Google began offering publishers the option of serving image ads in addition to text ads on their websites. Image ads are graphical ads offered in four sizes: 728 x 90, 468 x 60, 120 x 600 and 300 x 250 pixels. Like text ads, Google's image ads are targeted to the content of a publisher's web page using AdSense's contextual advertising technology. According to Google, it began running image ads since “running a combination of image and text ads expands the available ad inventory for your site, and offers the potential for increased revenue.” Google stated that its technology determines, on a page-by-page basis, whether text ads or image ads are likely to make publishers more money. It then serves the appropriate format to their pages.

In December 2004, Google announced that it would soon expand its image ad program to include a wider variety of creative formats. Specifically, Google will begin accepting animated GIFs from a small test group of advertisers. While AdSense publishers will have the option to show image ads, they will not be able to choose whether to serve only still, versus both still and animated ads.

Unlike other technological advances that Google frequently announces, the response to Google's expanded image ad program has generally not been positive. Many AdSense publishers believe that Google doesn't even have a large enough inventory of still image ads, and that animated ads will detract from the user experience of their website. In addition, many attribute the successes to date of the AdSense program specifically due to its use of text ads. Text ads are often viewed by site visitors as relevant content, rather than standing out as advertising which consumers started tuning out a few years ago.

The question now is whether visitors are also starting to tune out text ads, and if this is the reason why Google has expanded its image ad program. Does Google know best, or are the publishers right in this case? The answer most likely is “it depends” and that it depends upon the demographics of the site visitors and the site's content. For instance, a site targeted to teenagers, who are used to high-quality animations from video games and movies, may increase profits from animated or still image ads. Conversely, a site about financial planning for seniors should probably stay away from images, as they may detract from the user experience. In the latter case, text that complements the ads (e.g., convinces readers why they need
financial planning assistance) will prompt visitors to click on the text ads, particularly if the text ads include lines such as “need financial planning assistance?”

AdSense publishers must consider the long-term goals of their websites, which typically includes having a positive user experience to ensure repeat visits and maximizing profits. They then should experiment with the different types of ads to see which types best serve their goals. Publishers should use the Channels feature that AdSense offers which allows them to track click-through rates and revenues on a page-by-page basis, so that they can analyze which mix of ad formats maximize their profits.

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