Learn AdSense optimization techniques with our new video series

Did you know that a simple change like enabling both text and image ads can boost your eCPM and revenue? Or that a 300x250 medium rectangle typically performs much better in terms of revenue than a 250x250 square? Or that widening an AdSense search box can double the number of queries performed on your site, leading to higher earnings? If you didn’t, don’t sweat it -- the AdSense team and I have come up with a list of six top optimization tips and best practices that can help you earn more quickly.

Many of our publishers’ sites and accounts aren’t fully optimized for AdSense, which means that they’re not earning as much as they potentially could. In these AdSense optimization videos, we walk you through some of the top optimization techniques and explain why they’re helpful in boosting your eCPM and revenue. Incorporating these techniques into your website and AdSense ad layout can help you monetize your traffic like never before!

In the six-part video series, we talk about how to:

1. Upgrade to high-performing units
2. Monetize more content
3. Optimize search box placement
4. Opt-in to text and image ads
5. Use link units
6. Opt-in to placement targeting

Even if you consider yourself an AdSense expert, you’ll probably learn a few new and exciting tips from this series. Take a look at the 'Upgrade to high-performing units' video below, check out all six videos on the officialAdSense YouTube channel, and visit our optimization essentials center for more information.

Insight into your earnings (Part II): How smart pricing fits in

Last week, in the first half of our series designed to help you better understand your earnings, we introduced you to the ad auction for AdSense for content. To recap, eligible ads compete to appear on your pages; our ad auction determines which ads show, and how much you can potentially earn from them.

Now, let’s talk about smart pricing, a tool designed to help advertisers bid efficiently and effectively on many publishers’ ad auctions at once. Our Chief Economist, Hal Varian, explains the purpose of smart pricing, how it plays a role in the ad auction, and how it benefits the entire advertising ecosystem of publishers, advertisers, and users.

Although we aren’t able to provide detailed explanations of our algorithms, we’d like to address a common misconception and show that smart pricing isn’t intended to be a ‘punishment’ for publishers. It’s designed to increase advertiser confidence in AdSense sites by helping them set more accurate bids that reflect the business results they’re looking for. This then allows advertisers to increase their maximum bids, which ultimately helps publishers earn more in the long run.

Announcing beta test of expanded category blocking

Last year we launched sensitive category blocking in order to give you more control over the ads that appear on your sites by letting you opt out of receiving ads that fall into potentially sensitive specific categories such as dating, religion, and politics.

Today we’re excited to announce that we’re beginning to test a related new feature called general category blocking with a small group of publishers. General category blocking will allow you to block even more categories of ads from appearing on your site. We’re testing this feature with 170 more specific categories, including finance, travel, job, and automotive. This feature will allow publishers to block up to 50 ad categories from among a broad range of 170 fine grained categories. To help you understand potential changes to your earnings, we’ll provide you with the percentage of your total revenue and total impressions that fall under each category.

General category blocking will initially apply only to ads in English, regardless of the language of the site. We are working on expanding it to other languages in the future.

This feature is available in the new AdSense interface, which is currently in beta and being tested by a limited number of publishers.



Although we're not able to expand this test to additional publishers at this time, we wanted to give you a glimpse into one of the ways we're working to give you even more control over the ads that appear on your site. Over the coming months we’ll be working hard to refine this feature so that we can roll it out more broadly in the future. Please stay tuned to the blog for any updates, and feel free to leave us a comment in the meantime.

‘Tis the season for placement targeting

With the holiday season fast approaching, everyone is spending more online. As consumers start shopping for gifts, searching for holiday activities, and booking vacations, advertisers are putting more of their marketing dollars online to reach these potential customers. This means there is an increased demand for the ad space on your site and an opportunity for you to earn more. To help you capitalize on this trend, we recommend you take advantage ofplacement targeting.

Many advertisers create targeted brand campaigns at this time of year that are shown on AdSense sites in the Google Display Network. In fact, 99% of Google’s 1000 largest advertisers run campaigns on the Display Network. To ensure their brand is noticed by the right shoppers, advertisers will often use placement targeting to show their ads on websites in the Display Network that cater to their target audiences.

You can take advantage of this holiday increase in advertiser spend, and help advertisers placement target specific sections of your site using a feature calledad placements. By creating an ad placement, you’ll make sections of your site available to be targeted directly by AdWords advertisers.

Imagine a sport shoe manufacturer. To ensure his shoes get to the right consumers for the holidays, he may want to select sites within the Display Network that appeal to 25- to 34-year-old athletic males looking to purchase athletic shoes. As a publisher with a sports site, you can create ad placements for specific segments of your site so that the sport shoe manufacturer can find you based on these criteria. You can provide descriptions of your site, general demographic segment / audience information, and where the ads appear on your site. Placement targeting connects you directly to the advertisers who want to reach your readers, and are ready to spend their holiday budgets to do just that.

In the coming weeks, we’ll post more tips on how to make the most of placement targeting. In the meantime, check out the Help Center and this video to learn more about placement targeting and how you can get started. The sooner you do so, the sooner advertisers can see your ad placements and potentially include you in their holiday campaigns!

Western Union now launched in four African countries

We're excited to announce the launch of Western Union Quick Cash® payments in four countries in Africa! You can now select Western Union Quick Cash payments in:

• Algeria
• Ghana
• Kenya
• Uganda

Western Union Quick Cash payments will reach you faster than checks, and they're free of charge. Payments will continue to follow our normalpayment schedule and will be available for pickup in your local currency at your local Western Union agent the day after they're issued.

A couple of things to note: We can send Western Union payments only to publishers that have an individual account at this time. Also, the payee name on your account must exactly match the government-issued ID card that you'll use when picking up your payments. For more information on how to sign up for and pick up Western Union payments, please visit ourHelp Center.

‘Tis the season for placement targeting: Market your site with DoubleClick Ad Planner

Last week, we introduced you to placement targeting as a great way to capitalize on the increase in advertiser spend during the holiday season. This week, we’re kicking off our three-part optimization series to help you maximize your earnings by taking advantage ofDoubleClick Ad Planner . Ad Planner can help you market your site, make it easier for advertisers to search for you, and improve the data that these advertisers can see.

As you may recall from last week’s post, the first step to enabling placement-targeted ads to appear on your pages is to set up yourcustom channels as ad placements . Ad placements are specific groups of ad units where an advertiser can choose to place their ads using placement targeting. This enables advertisers to better identify websites that reach their target audiences based on the descriptions publishers provide about their sites, describing the content of their pages or the type of users who visit them. Turning custom channels into ad placements is simple. To learn more, check out ourYouTube video and visit our Help Center.

Once you’ve set up your ad placements, we encourage you to try out DoubleClick Ad Planner, a free media planning tool that helps advertisers find the sites their audiences are likely to visit and helps publishers make their sites easier to target.

In Ad Planner, you can claim the sites you own and customize their descriptions. For each site, you can also add up to five categories that describe your site's content, and the types, sizes, and formats of ads that your site supports. Doing this allows advertisers to easily find ad placement descriptions that match the interests of their target audiences. More targeted ads leads to a better user experience on your site and a greater opportunity to increase your earnings. For more information on how to get started, watch thisbrief introduction to DoubleClick Ad Planner and sign up today.

Avoiding accidental clicks Pt. 1: Keeping the right distance

In the past, we've talked about ad placements that are prone to generate invalid clicks. In a past post, for example, Mike noted that publishers should be careful about placing ads too close to navigational controls or other clickable page elements.

It's in the best interest of the user, advertiser, and publisher to avoid implementations that lead to invalid click activity. As you can imagine, users aren't very happy if they accidentally click an ad instead of a link on your page and are directed away from your site. Advertisers also don’t want to be charged for a click that a user made accidentally (though of course we do not charge advertisers for invalid clicks that we detect). And why should publishers care? Well, if we see that most of the clicks coming from your pages are invalid, we may need to disable your account to protect our advertisers.

One type of site we wanted to talk about are Flash-based game sites. Playing games on these sites, you'll notice that ads are often placed very close to the Flash player where the game is played. Publishers may reason that they're providing maximum value to advertisers by placing their ads very close to the area where their users are focused. However, many of these Flash games are played with a mouse, and the action in the games can lead users to do a lot of rapid cursor movements and clicking. We've seen many cases where ads were placed too closely to where the action was taking place, generating many accidental clicks.

Since each game and site are unique, we can't advise publishers on an exact distance between ads and games, but we do recommend a minimum distance of 150 pixels between the Flash player and ads.

We've worked with publishers on these issues in the past and noticed that increasing the distance between Flash player and ads has had, on average, a positive long-term effect on CPCs. The reason for this is smart pricing. As you may know, the revenue you receive is based on the amount an AdWords advertiser pays for each click on their Google ad. The amount the advertiser pays varies per ad and from website to website, based on the likelihood that a click will result in a conversion for the advertiser. If we determine that clicks on a site are less likely to lead to business results for an advertiser (e.g., an online sale or registration), we reduce the price that an advertiser will pay for those clicks.

So, in short: Moving the ads further away from Flash games decreases the likelihood of accidental clicks and increases the number of clicks leading to business results for advertisers. A good deal for all involved.

Site Maintenance on Saturday, October 16

This Saturday, our engineers will be performing routine site maintenance from 10am to 2pm PDT. You'll be unable to log in to your AdSense account during this time, but we'll continue serving ads to your pages and tracking your clicks, impressions, and earnings as usual. In addition, your ad targeting won't be affected.

We've converted the maintenance start time for a few cities around the world:

London - 6pm Saturday
Alexandria - 8pm Saturday
Hyderabad - 10:30pm Saturday
Jakarta - 12am Sunday
Perth - 1am Sunday

To learn more about what goes on during these maintenance periods, check out this Inside AdSense post.

‘Tis the Season for Placement Targeting: Optimize Your Ad Units

Last week, we discussed DoubleClick Ad Planner, a media planning tool to help you improve your placement targeting. Now that you’ve made your website visible to advertisers with Ad Planner and ad placements, we want to help you ensure that your ad units are also visible to advertisers and ready to be targeted. Here’s how to take advantage of advertiser spend with your ad units:

1. Implement your ad units above the fold and near your content, where users are already engaging with your site. “Above the fold” refers to the area on a page that a user can see without scrolling down.

2. Where possible, use top-performing ad sizes like the medium rectangle (300x250), large rectangle (336x280), leaderboard (728x90), and wide skyscraper (160x600).

3. Enable your ad units to show text and image ads, so that all relevant, available ad inventory is competing to appear on your site. Many advertiser campaigns are made up of image ads, so we highly recommend activating this feature to take full advantage.

Once you've made the changes, not only will your ad placements be ready for this holiday season, but they’ll also be targetable by advertisers in future ad campaigns.

To learn more about these topics, check out our YouTube videos on image ads and high performing ad units, or read more in our Help Center.

Check back next week for more ‘Tis the Season for Placement Targeting tips!

Avoiding accidental clicks Pt. 2: Use the right product

We hope you found our last post on invalid clicks useful. Today we wanted to give you more advice on this topic and talk about ads on pages containing interactive media, such as videos and games.

We understand that video content pages aren't as easy to monetize as regular text-based pages and that publishers are interested in experimenting with different ad placements, but we’d like to clarify some of our policies addressing AdSense for content ads in interactive media environments:

• We don’t allow publishers to overlay AdSense for content ads on video content.
• We don’t allow publishers to implement AdSense for content ads as in-stream video placements.
• We don’t allow publishers to implement AdSense for content ads on interstitial pages. So if a user has decided to watch a video, you may not implement ads on pages saying “your video will start in 15 seconds." We’ve also seen this placement on Flash gaming sites in the form of an ad being shown to the user while the game is loading in the background. However, even if you allow users to skip these ads or close them, this placement is not allowed.

Now for the good news: If you are interested in monetizing overlay or in-stream placements on your video content, please check out AdSense for video. Similarly, if you are interested in placing ads on interstitial pages on your Flash gaming sites, read about AdSense for games. The key difference between using these products and AdSense for content is that with AdSense for games and AdSense for video, we only show ads from a pool of advertisers who specifically target these kinds of placements and have optimized their campaigns and creatives towards them.

Think about your users and advertisers when implementing AdSense ads on your sites. Make sure that ads are separated enough from the content to prevent accidental clicks, and that ads are always recognizable as such. Remember that AdSense is an ecosystem that will continue to thrive as long as all parties remain happy within it. Users are happy to see relevant and useful ads that are not obtrusive or misleading, advertisers are happy to reach their target audience and get good returns on their investment, and you - the publisher - will be happy to have an AdSense account in good standing.

Control over Loaction of Money

We’ve always focused on offering people the most relevant results. Location is one important factor we’ve used for many years to customize the information that you find. For example, if you’re searching for great restaurants, you probably want to find ones near you, so we use location information to show you places nearby.

Today we’re moving your location setting to the left-hand panel of the results page to make it easier for you to see and control your preferences. With this new display you’re still getting the same locally relevant results as before, but now it’s much easier for you to see your location setting and make changes to it.

We do our best to automatically detect the most useful location, but we don’t always get it right—so in some cases you’ll want to change the setting. At other times, you may want to change your location to explore information relevant to another area. For example, let’s say you’re at work in Mountain View and you’re making plans to see a movie in San Francisco (a common occurrence here at Google). You can change your location to “San Francisco” and search for [showtimes] to find movie listings in San Francisco or search for [restaurants] to find places to eat before the show. Similarly, if you’re planning a trip to Hawaii, you can change the location to “Honolulu” and start exploring the [weather], [hotels] and of course the [beaches]. The location you set can be as specific as a particular zip code or as general as an entire country, but more specific settings generally lead to better search results.


You used to be able to see and control your location settings, but it was a little clunky. To see your settings, you could click “View customizations” on the results page and to modify them you could click “Change location” next to a variety of search results, such as maps and movie listings. As time has gone by, more and more locally relevant information has come online, whether it’s local business listings or a blog from your hometown. Meanwhile, Google has become much better at presenting this locally relevant content—so it felt like the right time to make this setting easier to find.

The new interface is rolling out now and will be available in more than 40 languages soon. We’re not changing anything about how we use location information to improve search, so it doesn’t change our existing privacy policies. To learn more about our new interface and how we use location in search, check out our help center.

The easiest way to get more income

The Easiest Financial Lesson You'll Ever Learn

Saving and investing wisely is not an easy achievement. How much do you need to save for retirement? Where should you put your money? There are thousands of financial advisors who offer differing opinions on these matters. But if there is one utterly clear maxim of saving for retirement it's this: contribute at least enough money to your 401(k) to maximize your employer's contribution.

Much to my shock and dismay, 39% of 401(k) participants don't follow this totally noncontroversial advice, according to a new study by Financial Engines, via the NY Times Bucks blog. That's crazy. Here's why maxing out your 401(k) is the biggest financial no-brainer you'll ever encounter.

More from TheAtlantic.com: • 3 Reasons Why the White House Flip-Flopped on Foreclosures • Small Business Embodies the Painfully Slow Recovery • Do Temporary Measures Lead to Greater Uncertainty?

When your company promises to match some contribution to a 401(k), it's like giving you a raise. Refusing the match is like telling your company that you don't want extra money. Imagine an example where you make $1,000 per paycheck. Now imagine if your company agrees to match 50 cents per dollar up to 6% of your 401(k) contribution per paycheck. That means you can put up to $60 per paycheck into your 401(k) and your company will also contribute $30.

Did you see what just happened? You got a 3% raise. Sure, you had to contribute $60 of your gross income as well, but this money just becomes savings -- something you will surely need some day anyway. Unless you are one of the few people who believe Social Security alone will be sufficient to allow for a pleasant, comfortable retirement at a reasonable age.

Moreover, that $60 you contribute doesn't reduce your take home pay by 6%, because it's taken pre-tax. For example, let's say after all taxes are taken, your income would normally have been 30% lower. If you didn't contribute to your 401(k), your after-tax income would be $700. If you contribute $60 pre-tax, however, your after-tax income is $658 -- only $42 less, instead of $60. This is the second reason why it's so great to contribute to a 401(k): you can delay taxes on that money, so you won't feel like you're saving as much as you actually are.

Let's reflect on this scenario where you contribute to your 401(k) as described above. Your after-tax income declines by $42, but you save $90. This is one of the best deals you'll ever get, and it's virtually impossible to beat.

Let's consider poor reasons not to contribute enough to receive your full employer match:

I Want More Freedom Investing

Maybe you don't like your employer's 401(k) plan. You hate mutual funds. You think you can do better on Scottrade. Good luck with that. In the example above, imagine if you decided to shun your 401(k) and invest $42 (the difference in after-tax income) from each paycheck yourself instead. You would need an investment that would more than double your money -- even if you saved your 401(k) as pure cash. The return would have to be 114% to get $90.

I Worry About Losing Money in the Market

Investing is hard, so this is a fair point. But you would have to do incredibly poorly to lose more than you gain from your 401(k) match. For that $90 savings to decline below your $42 contribution, it would have to decline by more than 53%. Even from the Dow's peak prior to the financial crisis to the bottom it hit in early 2009, the market lost less than 50% -- and that's about as bad as it gets. Moreover, you can generally diversify your 401(k) holdings to include stocks, bonds, and cash.

I Can't Afford to Contribute That Much

Saving isn't a financial constraint: it's a choice. Unless you're living very near the poverty line, then it's possible to find ways to cut expenses. And slicing 4% off your take home pay won't require most people to dramatically change their lifestyle. Go out to dinner less often or wait until a movie comes out on video to see it. Move a few miles further out of town to get a cheaper rent. Remember, you aren't actually lowering your income by contributing to a 401(k); you just don't spend as much of your money immediately. In fact, you're actually implicitly increasing your income by maximizing your employer's match.

I Don't Want My Savings Tied Up

If you need to get at your 401(k) money for some reason before you retire, you will get hit with a penalty and be forced to pay taxes on it immediately. That means the money is essentially tied up. But this isn't a good reason to fail to contribute up to your full employer match.

First, some 401(k) plans allow leeway for when a true emergency hits, where the penalty won't apply. Second, even if a penalty does apply, will it really be greater than your employer match? In the example above, a 10% penalty tax would apply beyond the usual income tax that you would have paid anyway on the income that you contributed. For the example, that penalty would be $9, and you would also need to pay something like $9 in taxes on the employer's contribution. But your employer contributed $30. So again, even if you try to get at your money early, you're still $12 ahead by maximizing your employer contribution.

If you don't already contribute enough to your 401(k) to maximize your employer match, then you should. It's easily the smartest, easiest financial decision you'll ever make. You may want to ultimately save more than that through other methods, but this is the bare minimum saving that you should do.

Daniel Indiviglio is a staff editor at TheAtlantic.com, where he writes about credit markets, regulation, monetary & fiscal policy, taxes, banking, trade, emerging markets and technology. Prior to joining The Atlantic, he wrote for Forbes. He also worked as an investment banker and a consultant.

The next generation of ad serving for online publishers

Today, we're announcing the next generation of ad serving technology for online publishers — DoubleClick for Publishers (DFP).

For the past few years, we've been investing in a suite of solutions — AdSense, ad-serving technology and the DoubleClick Ad Exchange — to help online publishers make the most money possible from their content, whether they sell advertising directly through their own sales force, through an ad network such as AdSense, or a combination of both.

For major online publishers — including social networks and online communities, entertainment sites, e-commerce sites and news sites — managing, delivering and measuring the performance of ads on their websites can be a hugely complicated process. A publisher's ability to manage this process can have a significant impact on how much money they make from their online content.

Imagine you're a major online publisher with a popular global surfing website and an ad sales team. Every second of every day, you have difficult decisions about what ads to show and how to measure their relative performance. For example:

• In the same ad space, a surfboard wax advertiser may want to run a static image ad for your Australian readers, while an airline offering flights to Hawaii may want to run an expandable interactive ad for your American readers.
• A fast-food restaurant wants to run their burger ads before noon and their pizza ads in the afternoon.
• You've sold 10 different surfboard makers a million ad slots at slightly different prices; now you have to allocate them across your various webpages to fulfill all these orders over the next two weeks.
• One of your surfing tournament reviews is linked to by a popular news site and you have a surge in traffic. Your sales team couldn't predict this, so you're potentially left without any ads for thousands of readers. You want to fill this ad space by selling it via an ad network which has ads available.

This is really just scratching the surface. Managing ad space can involve faxes, emailed orders, the manual scheduling of different ad campaigns across multiple sites and difficult decisions about how to allocate ad space most effectively.

Major online publishers use ad serving technology to manage the complex process of how and when the ads they have sold appear on their websites. In recent years, we've invested significantly in our ad serving products — DoubleClick's DART for Publishers for large publishers and Google Ad Manager for growing publishers. Thousands of major online publishers use these products to serve billions of ad impressions every day.

But we see an opportunity to improve ad serving even further by combining Google's technology and infrastructure with DoubleClick's display advertising and ad serving experience. Since we acquired DoubleClick in March 2008, our engineering and product teams have been working with online publishers to tackle the obstacles that prevent them from maximizing revenues from their websites.

The upgraded DFP includes a wide variety of features that will help publishers to get the most value out of their online content:

• A new interface that has been completely redesigned to save time and reduce errors.
• Far more detailed reporting and forecasting data to help publishers understand where their revenue is coming from and what ads are most valuable.
• Sophisticated algorithms that automatically improve ad performance and delivery.
• A new, open, public API which enables publishers to build and integrate their own apps with DFP, or integrate apps created for DFP by a growing third-party developer community (apps under development today include sales, order management and workflow tools).
• Integration with the new DoubleClick Ad Exchange's "dynamic allocation" feature, which maximizes revenue by enabling publishers to open up their ad space to bids from multiple ad networks. Dynamic allocation is described in this document [PDF].

DFP comes in two flavors, tailored for different publishers' needs: DoubleClick for Publishers, for the largest online publishers, and DFP Small Business, a simple, free version designed for growing online publishers. We'll be upgrading current DART for Publishers publishers to DoubleClick for Publishers over the next year as we continue to add features and modules, and we'll be moving Google Ad Manager customers to DFP Small Business in the coming weeks.

To reflect our continued investment in DoubleClick's products, as well as the central role of DoubleClick's technology products within Google's display advertising business, we're also today unveiling some changes to the DoubleClick logos — including typeset changes, incorporating a new "by Google" theme and retiring the "DART" brand.


The upgraded DoubleClick for Publishers is a perfect example of our continuing innovation in this area, and we believe that it will add significant value to online publishers' content. You can read more about the features of the upgraded DFP on the DoubleClick blog and on the DFP website.

Ode to AdWords

[From time to time we invite guests to blog about initiatives of interest, and are very pleased to have Allison Schwam, Senior Search Analyst at Backcountry, join us here. -Ed.]

When you don’t have to sacrifice your love of the outdoors for your career or vice versa, it’s something special. In fact, my love of both skiing and marketing has grown dramatically since I took my job at Backcountry. Getting to work with Google, specifically managing our AdWords account, is an online marketing geek’s dream come true. Combine that with every skier’s dream of Utah powder, and life is good.

Day traders wake up every morning to check their portfolio — I get up and check my AdWords accounts. Backcountry sells gear and equipment for the outdoor enthusiast from ski boots to tents, and we sell all of it online. My job is to drive valuable, qualified traffic 365 days a year to Backcountry using AdWords. The AdWords platform lets me manage hundreds of campaigns and hundreds of thousands of keywords with relative ease. I have access to huge amounts of data that are revealed as daily ebbs and flows in impressions, clicks and bids. If you do a Google search for [telemark ski gear], you’ll see our ad:


Backcountry was founded in 1996 by two self-proclaimed ski bums, John Bresee and Jim Holland. Since then, the company has grown to hundreds of employees. I’ve been working here for over two years. Ultimately, our goal is to “crush it,” as some ski town folk say: work hard, play hard.

A typical powder day for me is like this one last Friday when Park City got 12 inches of new snow overnight. Here’s how AdWords helps me manage both work and fun.

7 – 7:45am
Roll out of bed.
Get the coffee going.
Fry eggs and bacon.
Check snow totals.

If it looks like a good ski morning, I first check my email and glance over our AdWords campaigns. All I need to do is my daily reporting to see that I’m on target for my revenue and cost goals. As long as things are okay, I email my boss to say I’ll be out slaying the white dragon.

Just as I have the ideal tools to maximize our online campaign performance, I have the tools avid skiers covet for deep days: fat, rockered skis, stiff ski boots, Gore-Tex jacket and pants, helmet, goggles, merino wool layers, etc. After I grab my gear, I’m off.

7:45am – 12noon

My commute to The Canyons Ski Resort takes 10 minutes. My friends and I know how to get the most out of our time on the mountain, balancing chair lift time, snow quality and vertical. Does that sound a bit like cost-per-click, conversion rate and top-line revenue? Take this lift to that lift, ski the trees while we wait for that chair to open, get after our favorite steep lines. Next thing you know:

Photo by Jim Harris

Face shots are invigorating. Hard to explain, best to experience! After a few glances at the time and collecting my thoughts, I make my way off the mountain.

12pm – 5pm

I head a few miles down the road to the office. As the afternoon goes by, co-workers will emerge from their cubicles; sometimes because legs are cramping up but also to share stories about how the morning was. Where did you ski? How was the snow? Smiles all around.

I settle into work knowing what I need to succeed at my job is at my fingertips. AdWords gives me visibility into my programs to prioritize and understand trends. It also makes it easy to add and edit my account without getting bogged down in manual work. I regularly use Keyword Performance Reports to monitor both head terms and tail terms to stay on top of revenue opportunities. I’ll take into account the average order value and also the percentage of clicks that turn into sales (rate of conversion) in order to manage our keyword bids. As I do bid updates, I also check the AdWords Preview Tool to see how our ads are ranked and what is going on with our competition. We don’t really focus on “cost-per-click” but instead on “cost as percentage of revenue,” which means the more people purchase, the more ads we can run. So the higher the return on advertising spend, the more room we have to grow our paid search presence.

5 pm – 8 pm

I like this afternoon time in particular because it’s quiet and I can really focus on data-crunching. Uninterrupted time and a strong cup of coffee are essential for doing long-term analysis.

Campaign Performance Reports are great for identifying long- and short-term trends as seasons shift or for changes in demand by brand. We just wrapped up our winter sale, so this is a great time for me to run an Ad Performance Report to analyze which versions of ad copy had the strongest clickthrough rates for future reference. Finally, Google Insights for Search is a fun tool. It’s a great way to connect with our buyers by discussing big-picture trends with the brands we carry. We can look at AdWords Campaign performance and try to tie it back to general search volume in the marketplace and identify product searches on the rise. In short, given our metrics focus, AdWords gives me the information I need to make decisions about specific keywords, bids, and our overall spend.

There are typically the same few folks hanging out at the office this late. We’ll exchange some pleasantries, and as the lights get turned off I’ll shut down my computer.

When I earned an undergraduate degree in marketing and cultural anthropology, I had only a vague idea how I was going to create a career with behavioral and analytical activities. It turns out online marketing is an exciting mix of real-time data and customer service. AdWords lets me manage campaigns very efficiently, so I have time to dig deeper and do the strategic analysis that makes this job about much more than just meeting revenue goals.

Finally, I picked Park City because it’s more than a ski town. Here fanatical skiers, trail runners, bikers, snowboarders and climbers can live year round and still have a meaningful career. I’ll always be grateful to companies like Backcountry and Google for making this possible: Backcountry for fostering the passions of the outdoor enthusiast, and Google for innovation in creating the forums and tools that really work for us.

YouTube calling: Now serving ads on the YouTube mobile site

Mobile phones are rapidly becoming essential tools for surfing the web, connecting with friends, and sharing and watching video online, and we're seeing these effects at YouTube. The YouTube mobile site is more popular than ever: site traffic grew by over 160% in 2009, and now millions of people all over the world are streaming tens of millions of videos every day on their mobile phones. The mobile space moves fast, so we've been working hard to roll out new features and functionality quickly, especially as more and more people adopt YouTube-capable phones.

The increased usage of high-end devices like the iPhone and Android is also making mobile advertising easier and more effective for advertisers. So today, we're launching ads on the home, search and browse pages of the American and Japanese YouTube mobile websites (m.youtube.com from your mobile browser). This is a great way for advertisers to reach YouTube viewers across multiple platforms. In fact, at launch YouTube will immediately provide one of the largest audiences for a mobile ad campaign anywhere on the mobile web. And because YouTube mobile attracts early adopters, the site can deliver to advertisers a coveted demographic of tech savvy trendsetters. We've already seen some early campaigns run on YouTube's mobile site by advertisers like Sony (for the DVD release of "District 9") and Kia, both of whom were able to easily reach their target audience, no matter where they were looking for video.



Our first tests of YouTube mobile ads — with brands ranging from L'Oreal to Land Rover — showed strong results related to click-throughs, user experience and brand awareness, and we've learned a lot in the months since then. As a result, ads on the YouTube mobile website will be banner ads sold on a full-day basis (like with the YouTube homepage on the web), making a mobile buy an easy and valuable addition to any YouTube campaign. For example, today Mazda is running a homepage ad on YouTube.com, and extended their campaign to run ads on our mobile site as well.

If you're interested in learning more, reach out to your YouTube or Google sales rep, or visit youtube.com/advertise.

The future of display advertising

It's been two years since we completed our acquisition of DoubleClick, a leading provider of display advertising technology. This is the first in a series of posts over the next few weeks about our vision for online display advertising in the years ahead. Today, Susan Wojcicki previews the series and looks back at how we've brought Google and DoubleClick technologies together over the past two years. -ed.

The first online display advertisement — a simple, clickable image — appeared online over 16 years ago. Fast forward to 2010. You're likely to see display ads — image, text, video and rich-media formats — on most of the websites that you visit. These ads are crucial to the Internet. They provide information about thousands of products, services and businesses. They help to fund the web content and services that we all use. And they enable large and small advertisers to reach new customers, increase sales and grow their businesses.

I've watched display advertising evolve from a series of simple, static images, to the incredible creative units that we see today. The best display ads today are often like mini-websites with complex animations, stunning graphics or videos, interactive and social elements. As technology enables better ways of matching ads, they're becoming more relevant to the audience that views them and the website that hosts them. In addition, they're bought and sold across the web more seamlessly than ever before.

Our belief in the potential of display advertising has spurred our investments in this area. We started investing seriously nearly six years ago, by offering display ad formats on our AdSense partner sites in the Google Content Network (which now comprises over a million online publishers). About three years ago, we acquired YouTube and began to offer various display advertising options.

And two years ago, we acquired DoubleClick, a leading provider of display advertising technology. Since then, we've been busy integrating the DoubleClick and Google technologies, and unveiling new features to improve display advertising for users, advertisers and online publishers alike. I thought this was a good opportunity to look back on what we've done over the past two years by bringing Google and DoubleClick together.

Helping our advertisers get better results

By combining Google and DoubleClick technologies, we've made significant enhancements to advertising on the Google Content Network. For example, we've offered support for third party vendors, enabled ads to be frequency capped so that users don't see the same ad over and over, introduced view-through conversion reporting and opened a beta of interest-based advertising. Through these enhancements, we believe we can deliver more relevant, measurable ads that create more value for everyone — users get more useful ads, and these ads generate better results for advertisers and higher returns for publishers.

We're also working to provide an integrated solution that enables advertisers and agencies to plan, buy, create, serve and measure display ads across the web, in a single interface. For the longest time, getting a display ad campaign up and running has been inefficient and cumbersome. We've made significant upgrades to DoubleClick's ad serving technology, DoubleClick for Advertisers, adding new measurement and planning technologies, including Ad Planner and Google Analytics. These improvements streamline advertisers' and agencies' online advertising campaigns.

New ways of buying display ads: the Ad Exchange

In September 2009, we launched the new DoubleClick Ad Exchange. The Ad Exchange is a real-time marketplace that helps large online publishers, ad networks and agency networks buy and sell display advertising space. The new Ad Exchange is a major step towards creating a more open display advertising ecosystem for everyone. The technologies in the new Ad Exchange — principally "real-time bidding" and "dynamic allocation" — are already delivering great results for participants. AdWords advertisers can run ads on sites in the Ad Exchange, using their existing AdWords interface. This gives AdWords advertisers more high quality sites to run display ads on. Similarly, our AdSense publishers are benefiting from more high-quality display advertisers coming through the Ad Exchange.

Maximizing revenue for online publishers

A few weeks ago, we launched the upgraded DoubleClick for Publishers, to help publishers get the most value out of their online content and improve the process of selecting the ads to appear on their websites. In making this upgrade, we've been focused on combining the best of Google's technology and infrastructure with the best of DoubleClick's ad serving expertise to help generate more advertising revenue for major online publishers. For these publishers, managing, delivering and measuring the performance of ads on their websites can be a hugely complicated process that can have a significant impact on how much money they make from their online content. Ad serving is the core technology that underpins this process.

Unleashing creativity in advertising

There's no shortage of creative marketers with brilliant ideas to engage and reach consumers — from remarkable rollerblading baby videos, to customizable ads featuring interactive Twitter feeds. We launched DoubleClick Studio, a rich media tool that makes it easier for agencies and advertisers to design interactive rich media ads. We've also continued to invest in DoubleClick Rich Media, which enables complex and creative ads to be easily trafficked and served. Ads created with these DoubleClick products are engaging users every day, and frequently appear on the homepage of YouTube, on sites in the Google Content Network and all across the web. To further help marketers run engaging ads across the web, we recently acquired a company called Teracent that developed technology that can tailor literally thousands of creative elements of a display ad, in real-time.

To date, we've put hundreds of thousands of engineering hours into building our display solutions and have partnered closely with advertisers, agencies and online publishers to help them get the best results; and to help users see more engaging and relevant ads. We've also developed controls like the Ads Preferences Manager and a specially-engineered opt-out plugin, so that users have transparency, choice and control over the ads they see.

However, our work in recent years is really only the beginning of what's possible in this area. Across the board, we're building and seeing vast improvements in display advertising technology. These technology improvements will make it far easier to buy ads across the web at scale, create engaging ad formats, measure the impact of ad campaigns in innovative and insightful ways, deliver relevant ads to precisely the right audiences in real-time and maximize the value of publishers' online content. With these advances, we think that display advertising, as a category, can grow dramatically.

Over the next few weeks, we're looking forward to exploring these themes on this blog, and explaining some of the ways that new technologies are helping to move display advertising forward for everyone.

European Court of Justice rules in Google’s favour

Google aims to provide as much information as possible to users so that they can make informed decisions. For this reason, we have been awaiting a series of decisions by the European Court of Justice that explore the extent to which trade mark rights can be used to restrict information available to users. The first of those decisions was delivered today.

The question before the court was whether advertisers should be allowed to choose keywords freely when reaching out to users on the Internet. In other words, if advertisers are allowed to show advertisements when another company's brand name is entered as a search query.

Trade marks are part of our daily life and culture, helping us to identify the products and services that we may be looking for. They are key for companies to market and advertise their products and services. But trade mark rights are not absolute.

We believe that user interest is best served by maximizing the choice of keywords, ensuring relevant and informative advertising for a wide variety of different contexts. For instance, if a user is searching for information about a particular car, he or she will want more than just that car’s website. They might be looking for different dealers that sell that car, second hand cars, reviews about the car or looking for information about other cars in the same category.

And, contrary to what some are intimating, this case is not about us arguing for a right to advertise counterfeit goods. We have strict policies that forbid the advertising of counterfeit goods; it's a bad user experience. We work collaboratively with brand owners to better identify and deal with counterfeiters.

Some companies want to limit choice for users by extending trade mark law to encompass the use of keywords in online advertising. Ultimately they want to be able to exercise greater control over the infomation available to users by preventing other companies from advertising when a user enters their trade mark as a search query. In other words, controlling and restricting the amount of information that users may see in response to their searches.

Today, the Court confirmed that Google has not infringed trade mark law by allowing advertisers to bid for keywords corresponding to their competitors’ trade marks. It also confirmed that European law that protects internet hosting services applies to Google’s AdWords advertising system. This is important because it is a fundamental principle behind the free flow of information over the internet.

Our guiding principle has always been that advertising should benefit users, and our aim is to ensure that ads are relevant and useful. We will study the decision as we move forward in order to make sure that we continue to deliver advertising that is perceived as both valuable and relevant by our users.

Introducing Google Ad Innovations

This is the second post in our series on the future of display advertising. Today, Neal Mohan looks at how new technology can power creativity in the years ahead - Ed.

Imagine you own a popular coffee chain in Denver that you want to promote. On Monday afternoon, it’s warm and 80 degrees in the city. You run a display ad campaign online that offers Denverites a discount coupon for an iced cold latte, with a searchable map embedded in the ad to show local branches, and a real-time feed from people who have tweeted publicly about your newest flavor. That evening, a cold front rolls over the Rockies. Your ad automatically and dynamically adjusts to present a photo of a hot, steaming cup of hot chocolate in front of a warm fireplace, together with a home delivery number and an offer of free marshmallows.

Creative? Absolutely. Impossible? Hardly. You can do this today using technology from Teracent that we’re working to roll out for our clients who advertise on the Google Content Network or who use DoubleClick Rich Media.

There’s no doubt that advertisers today are increasingly seeking to run campaigns that are highly measurable and relevant to users. That’s one of the benefits of advertising on the Internet. But great ad campaigns are about more than clicks or numbers. The best campaigns are so memorable and effective because they make an emotional bond with us. The very best can engage us, move us and make us feel a connection with the brand that’s being promoted. That’s the real creative genius of advertising.

We traditionally think of TV as the most creative advertising media. But display advertising has the promise of a couple of things that even TV doesn't have — the ability to dynamically customize ads in infinite ways and the opportunity to enable a true two-way interaction and dialogue with users.

Here are some examples of how creative ads have been used to drive engagement and deliver great results:

• An award-winning rich media ad that was created by Euro RSCG for the new Volvo XC60. In addition to an interactive game, photos and gallery, it incorporated a Twitter feed from the New York Auto show. In just three days, the campaign garnered 170 million impressions, 50,000 clicks and 17,000 hours of brand engagement. No other type of advertising format could have come close in driving this type of conversation with a brand's potential customers.
• A great campaign for Harley Davidson, created by the agency Overdrive. This ad functions almost like a website — with interactive video, Twitter and Facebook Share functionality, as it invites people to send a "Tribute to the Troops" for Veteran's Day. Over 280,000 people clicked to watch the video embedded in the ads and more than 18,000 Tributes were sent to troops from this campaign.

Some in our industry have asked why we aren’t seeing more creative display ad campaigns like these. In our view, it’s definitely not because of a lack of creativity or an unwillingness to experiment. The problem to date has been the lack of tools and technologies necessary to do this at scale across the Internet.

It takes hard work to create, serve and measure the impact of these ads. Under the hood, there’s a lot of technology that needs to come together for them to work seamlessly. Take the Harley Davidson ad: It contains dozens of complex creative elements, integrations with various technologies like Flash, numerous APIs, Twitter and Facebook, and multiple parties involved in its creation and delivery — from the creative agency, to teams at Google, through to the ad operations teams at the publisher. You could spend hundreds or thousands of hours building out creative concepts and ads like this, but ultimately only run them on a few sites because the customization takes so much time to implement across the web.

We believe that technology, by streamlining and eliminating some of the hard work involved, and by offering new creative possibilities, can be a great enabler of more creative ads.

What if it were seamless to serve and run highly creative ad units — not just on one site, but on thousands of sites, and also in videos and on mobile phones? What if it were simpler to incorporate social features in the ad creative itself — such as letting people endorse and spread particular ads or campaigns to their friends? What if you could serve video ads that included simple tools in the ad creative itself that allowed users to easily make their own mashups of your ad, and post and share them with friends?

And what if you could make a few different creative elements for an ad, and then have them dynamically chosen, depending on factors like where the ad’s shown, product availability, time of day and any other variable you choose — just like the coffee ad I mentioned at the start? That way, agencies and advertisers would be able to spend their time building out their creative concepts and ads, and technology can multiply the impact by running it on thousands of sites with millions of variations for every website and user.

Technology is evolving rapidly and will help facilitate all of this in the months and years ahead. What about imagining what might be possible on your phone in a few years? Let’s say you're walking down the street, using an augmented reality app on your mobile phone to see what's interesting around you. In your viewfinder, you see a billboard for a great product — basketball shoes. Using image recognition, the app could recognize that it's a billboard for a particular shoe brand, show an expandable ad for that brand, let you choose to watch a video of one of their shoes in action, display all the nearest stores on an accompanying map, and include a way for you to order a shoe and pick it up on your way home from work.

That’s just one example of what one day will be possible in the world of display advertising. It’s the goal of our display advertising efforts to produce the tools and technologies to allow for this type of unbridled creativity at a grand scale.

Introducing Google Ad Innovations

The principle behind the advertising products we build at Google is simple: ads are information. But the type of information that ads provide is getting more varied and inventive all the time, and as a result ads are getting more interesting, social and useful.
As advertising evolves, we want to build the tools that make it possible for marketers to connect with customers in meaningful, creative ways. We’ve found that the best way to do that is to focus on the user, test new approaches regularly and listen closely to the feedback of the advertisers using our products. To work closely with advertisers on what comes next, today we’ve launched Google Ad Innovations, where we’ll show you some of our latest ideas around advertising technologies and get your feedback.

One of the new features we’re showcasing is a set of AdWords reports, launched last week, called Search Funnels. These reports can help an advertiser understand whether there are keywords in her account that are helping to drive sales at a later date. At Google Ad Innovations, you can read more about this feature, watch a video walking you through how it works and send us your ideas on how to improve it.

If you’re interested in the future of advertising with Google, pay Ad Innovations a visit — we’ll regularly add tools and features to the site, and we hope you’ll check them out!

Introducing Google Ad Innovations

The principle behind the advertising products we build at Google is simple: ads are information. But the type of information that ads provide is getting more varied and inventive all the time, and as a result ads are getting more interesting, social and useful.
As advertising evolves, we want to build the tools that make it possible for marketers to connect with customers in meaningful, creative ways. We’ve found that the best way to do that is to focus on the user, test new approaches regularly and listen closely to the feedback of the advertisers using our products. To work closely with advertisers on what comes next, today we’ve launched Google Ad Innovations, where we’ll show you some of our latest ideas around advertising technologies and get your feedback.

One of the new features we’re showcasing is a set of AdWords reports, launched last week, called Search Funnels. These reports can help an advertiser understand whether there are keywords in her account that are helping to drive sales at a later date. At Google Ad Innovations, you can read more about this feature, watch a video walking you through how it works and send us your ideas on how to improve it.

If you’re interested in the future of advertising with Google, pay Ad Innovations a visit — we’ll regularly add tools and features to the site, and we hope you’ll check them out!

A new approach to how we work with advertising agencies

As the advertising industry has grown and evolved, so too has our relationship with advertising agencies. These companies, from SEMs to the largest traditional agencies, play a critical role in the continued success of Google, our advertisers and our industry — so we spend a lot of time talking to agencies about how we can make it easier for them to work with us and our advertisers.

We’ve had a lot of great feedback from agencies and today we’re announcing changes designed to offer them better training and more rigorous certification in AdWords proficiency, and to lower costs for those who help advertisers get the most out of AdWords. We’re also making it easier for advertisers to find certified agency partners to work with them on digital advertising. Here’s an overview of what’s changing today.

Raising the bar for Google AdWords Certification
We're retiring our long-standing Google Advertising Professionals (GAP) program and replacing it with a new Google AdWords Certification program for those managing AdWords accounts on behalf of advertisers. The new program provides agencies and their employees with more up-to-date, comprehensive, strategy-focused training and certification on the latest tools and best practices for managing AdWords accounts, including:

• New training materials to help agencies better understand recent changes in search marketing and AdWords functionality, available via webinar series, learning center, or on-site training at Google
• More challenging certification exams to test practical application of knowledge and best practices (rather than simple recall of knowledge)
• Advanced-level exams to highlight competency in search, display, reporting and analysis
• A redesigned Certified Partner badge, which includes a “Click to Verify” element so advertisers can view the partner’s profile page for additional information.

For more information on the AdWords Certification Program or to create an account, visit the Google Certification program site and help center.

Helping advertisers find Google Certified Partners
Google Certified Partners can opt in to Google Partner Search, an online, searchable directory that helps advertisers identify Certified Partners that meet their criteria. Small and medium-sized advertisers who haven’t previously used an agency have told us that evaluating potential partners can be a daunting task, so we think Google Partner Search will be especially valuable for them.

To show up in advertiser searches through Google Partner Search, agencies must opt in and fill in details about their core attributes and capabilities. Searches can be filtered by location, agency experience within a particular budget range, the types of services provided and the industry verticals an agency serves. Advertisers can then evaluate the list of Certified Partners that meet their criteria and contact the partners who seem best suited to their needs. To learn more about Google Partner Search, visit the help center.

Introducing preferred AdWords API pricing
The Google AdWords API allows developers to build applications that interact directly with the AdWords platform. Agencies and developers of search engine marketing tools use these applications to manage large AdWords campaigns more efficiently and creatively.

Today, we’re announcing preferred AdWords API pricing. This gives qualified Google AdWords Certified Partners who manage client AdWords accounts free use of the AdWords API based on managed client spend. To apply, agencies must have an active agency profile page and be compliant with the AdWords API terms and conditions. We’ll evaluate applications for preferred AdWords API pricing based on the criteria listed here.

We hope preferred AdWords API pricing will encourage agencies and developers to experiment with new strategies, expand the functionality of their tools, and build more comprehensive client campaigns without worrying about increased costs. You can learn more about preferred pricing and how to apply at the preferred AdWords API pricing site.

We’re looking forward to receiving feedback on all of these initiatives and to continuing to improve our partnership with agencies.

We’ve officially acquired AdMob!

we said that mobile advertising was moving fast. So are we! Today, we closed our acquisition of AdMob. Omar Hamoui has built a great team and great products at AdMob and we’re thrilled to officially welcome them to Google.

We’ll now begin the process of bringing our products and teams together in the best way, and building new products and features together. We’re working to make this integration happen as fast and as seamlessly as possible. We’ll actively keep our clients up-to-date as we bring our businesses together — stay tuned!

It’s clear that mobile advertising is becoming a much larger part of our clients’ and partners’ strategies and with this acquisition, it’s now a central part of our own business. In continuing to invest in this highly competitive area, we’ll be bringing together our technology, resources and expertise in search advertising with AdMob’s innovative solutions for advertising on mobile websites and in mobile applications.

Mobile search is central

One of the key ways that people find and access information on their mobile devices, just like on the desktop, is through search. As smart phones have proliferated, we’ve seen dramatic increases in mobile search volume. Over the past two years, Google's mobile search volumes have grown more than fivefold, at an accelerated pace. In the first three months of 2010, people with smartphones with “full” WebKit browsers (such as the iPhones, Android devices and Palm Pre) searched 62 percent more than they did in the previous three months.

Increasingly, people aren’t just typing search queries into their mobile devices. They speak them, they take photos of them and they even translate them from different languages.

In addition to traditional search ads on mobile devices, we’ve worked to develop entirely new search ad formats. “Click-to-call” search ads, for example, have been really popular. They enable advertisers to include a local business or national phone number directly in their ad text that you can click to reach the business directly via phone. This is a really great way for you to easily get information from a relevant business (say, a local restaurant), and a highly effective way for advertisers to connect with interested customers.

With many more advances to come, search advertising will remain the central way that many businesses connect with consumers on mobile devices.

Mobile websites and apps

In addition to search, another key way that people access information is through mobile websites (accessed through a browser) and mobile apps (available through Apple’s App Store, the Android Marketplace and more).

Mobile display and text ads make it easy for publishers and developers to make money from their mobile websites and apps, and enable advertisers to extend the reach of their campaigns to relevant mobile content. In this area, AdMob has been a real pioneer and has innovated at a tremendous pace, building a successful business and working with thousands of advertisers, publishers and developers.

AdMob was one of the first companies to serve ads inside mobile applications on the Android and iPhone platforms. They’ve developed a host of engaging and creative ad units for Android and iPhone apps—for example, interactive video ad units and expandable rich media ads. Google has also been developing new features for in-app ads. For example, last week, we announced that we’ll be making “click-to-call” ad formats available to developers who run AdSense in their mobile apps. With Google and AdMob starting to work together, there’s lots more innovation to come in this area.

The future

It’s clear that mobile advertising is growing incredibly fast with lots of businesses innovating at great speed. Every day, more marketers are looking to take advantage of the mobile-specific capabilities, extended reach, great returns and value that mobile advertising provides. Advertisers are now starting to see mobile as an essential part of their overall campaigns, not just a silo-ed experiment on the side.

We want to unleash agencies’ and advertisers’ creativity on all mobile devices and deliver them better results from their campaigns, drive better returns and more choice for publishers and developers, and help people get better ads and more free mobile content.

We believe that mobile advertising can play a significant role in every single marketing campaign. We’re passionate about the unlimited possibilities in this space. Today, with AdMob, our work to make them a reality begins.

Posted by Susan Wojcicki, Vice President of Product Management

Stock Repurchase
As previously announced, Google intends to repurchase in the open market a number of shares equal to the number of shares issued in the transaction and issuable upon exercise of outstanding options to purchase common stock issued by AdMob. The repurchase program is expected to commence shortly after the completion of the acquisition. The repurchases will be funded from available working capital.

We’ve officially acquired AdMob!

Last Friday, we said that mobile advertising was moving fast. So are we! Today, we closed our acquisition of AdMob. Omar Hamoui has built a great team and great products at AdMob and we’re thrilled to officially welcome them to Google.

We’ll now begin the process of bringing our products and teams together in the best way, and building new products and features together. We’re working to make this integration happen as fast and as seamlessly as possible. We’ll actively keep our clients up-to-date as we bring our businesses together — stay tuned!

It’s clear that mobile advertising is becoming a much larger part of our clients’ and partners’ strategies and with this acquisition, it’s now a central part of our own business. In continuing to invest in this highly competitive area, we’ll be bringing together our technology, resources and expertise in search advertising with AdMob’s innovative solutions for advertising on mobile websites and in mobile applications.

Mobile search is central

One of the key ways that people find and access information on their mobile devices, just like on the desktop, is through search. As smart phones have proliferated, we’ve seen dramatic increases in mobile search volume. Over the past two years, Google's mobile search volumes have grown more than fivefold, at an accelerated pace. In the first three months of 2010, people with smartphones with “full” WebKit browsers (such as the iPhones, Android devices and Palm Pre) searched 62 percent more than they did in the previous three months.

Increasingly, people aren’t just typing search queries into their mobile devices. They speak them, they take photos of them and they even translate them from different languages.

In addition to traditional search ads on mobile devices, we’ve worked to develop entirely new search ad formats. “Click-to-call” search ads, for example, have been really popular. They enable advertisers to include a local business or national phone number directly in their ad text that you can click to reach the business directly via phone. This is a really great way for you to easily get information from a relevant business (say, a local restaurant), and a highly effective way for advertisers to connect with interested customers.

With many more advances to come, search advertising will remain the central way that many businesses connect with consumers on mobile devices.

Mobile websites and apps

In addition to search, another key way that people access information is through mobile websites (accessed through a browser) and mobile apps (available through Apple’s App Store, the Android Marketplace and more).

Mobile display and text ads make it easy for publishers and developers to make money from their mobile websites and apps, and enable advertisers to extend the reach of their campaigns to relevant mobile content. In this area, AdMob has been a real pioneer and has innovated at a tremendous pace, building a successful business and working with thousands of advertisers, publishers and developers.

AdMob was one of the first companies to serve ads inside mobile applications on the Android and iPhone platforms. They’ve developed a host of engaging and creative ad units for Android and iPhone apps—for example, interactive video ad units and expandable rich media ads. Google has also been developing new features for in-app ads. For example, last week, we announced that we’ll be making “click-to-call” ad formats available to developers who run AdSense in their mobile apps. With Google and AdMob starting to work together, there’s lots more innovation to come in this area.

The future

It’s clear that mobile advertising is growing incredibly fast with lots of businesses innovating at great speed. Every day, more marketers are looking to take advantage of the mobile-specific capabilities, extended reach, great returns and value that mobile advertising provides. Advertisers are now starting to see mobile as an essential part of their overall campaigns, not just a silo-ed experiment on the side.

We want to unleash agencies’ and advertisers’ creativity on all mobile devices and deliver them better results from their campaigns, drive better returns and more choice for publishers and developers, and help people get better ads and more free mobile content.

We believe that mobile advertising can play a significant role in every single marketing campaign. We’re passionate about the unlimited possibilities in this space. Today, with AdMob, our work to make them a reality begins.

Posted by Susan Wojcicki, Vice President of Product Management

Stock Repurchase
As previously announced, Google intends to repurchase in the open market a number of shares equal to the number of shares issued in the transaction and issuable upon exercise of outstanding options to purchase common stock issued by AdMob. The repurchase program is expected to commence shortly after the completion of the acquisition. The repurchases will be funded from available working capital.

Online publishers: growing the display advertising pie

This is the latest post in our series on the future of display advertising. Today, director of product management Jonathan Bellack looks at our efforts to help online publishers generate more advertising revenue - Ed.

For millions of online publishers—from the smallest blogger to the largest entertainment, news, e-commerce and information sites—online advertising revenue is vital. When publishers can maximize their returns, everyone benefits from more vibrant online content and websites. But the pace of change in the industry can be intimidating—how can a publisher keep up with what’s new, let alone grow their business?

We believe that the new technology we’re developing to make display advertising work better will help to grow the display advertising pie for all publishers, by orders of magnitude. We shouldn’t be asking how publishers can eke another 5 or 10 percent out of display advertising in the next few years. We should be looking at how the industry can double or triple in size.

We’ve previously described our three core display ad products for publishers:

• AdSense, which places the most valuable, relevant ads on our partners’ websites, without the publishers having to sell the ad space themselves;
• DoubleClick for Publishers, our ad serving platform, which maximizes the value of ad space that publishers have directly sold themselves;
• DoubleClick Ad Exchange, a real-time auction marketplace, which maximizes large publishers’ overall returns, by "dynamically allocating" the highest value ad, whether directly sold, or indirectly sold through an ad network.

I wanted to highlight the key principles guiding our future product innovations in this area, as we work to help all publishers maximize their online ad revenues.

1. Making life more efficient
For most large publishers, directly sold ads (ads sold by their own sales force) comprise the vast majority of their ad revenues. But today, selling and managing these ads is frustrating, expensive and often involves tedious manual processes.

Imagine a TV network that receives TV commercials in 100 different formats, languages, lengths and video dimensions, and then has to manually convert, translate and edit them all, then manually count the number of TV sets on which the ad appeared before sending a bill. Sounds crazy, right? Well, that scenario is far less challenging than what most large online publishers face today with display advertising. Today, across the industry, for every dollar spent on display advertising, 28 cents is eaten up in administrative costs. If we can reduce that proportion, it would mean a lot more money going to publishers.

Things like new standards for video ad serving and systems that connect buyers and sellers are helping publishers support the most engaging and creative ads across their sites. But there are quantum leaps to come in this area, for small and large publishers. Think of a political candidate who is seeking donations on his or her website—the candidate can receive money in seconds. Imagine if publishers—even the smallest website—had tools that enabled advertisers to click a button on their site to upload an ad, let them pay for it with a credit card, and then deliver this ad—through the publisher’s ad server—within minutes. This sort of “immediate ad” will become possible as ad serving technology continues to simplify the process of buying and selling ad space.

2. Total revenue management
AdSense selects the most valuable ad for publishers from a large number of ad networks, to maximize ad revenues every time a page loads.

New ad serving and “dynamic allocation” technology, like the DoubleClick Ad Exchange, is emerging that enables ad revenues to be maximized across both directly and indirectly sold ad space, ad impression by ad impression, using real-time prices. Second by second, across millions of ad impressions, this can meaningfully boost major publishers’ revenues. Using this technology, the average price that a publisher receives for ad space sold through the Ad Exchange is more than 130 percent higher than the average price of ad space sold directly to ad networks. In fact, without this type of dynamic allocation across sales channels, a publisher’s revenues can never truly be maximized.

In years to come, this true revenue maximization can get even smarter. There’s no question that delivering the right ad to the right user at the right time delivers better results. We have years of experience in doing this with search and text ads; we’re now bringing that experience to the world of display. This means investing in a smarter ad server that can automatically learn where and when a given ad will get the best response, as well as manage delivery to deliver those improved results for publishers. This new ad server can even anticipate a publisher’s future events and adjust delivery accordingly—for example, if traffic drops off every weekend, the ad server can automatically speed up during the week to keep everything moving smoothly.

3. More insight and control
Our vision is to provide all publishers the smartest possible advertising system that can give them knowledge and control of everything going on with their ad business. The vision is already becoming a reality: the upgraded DoubleClick for Publishers platform offers publishers 4,000 times more data than its predecessor. And in recent years, we’ve been constantly adding new reporting options for our AdSense partners.

By putting publishers in firm control and empowering them with more data, reports and controls (for example, over what advertisers and ad networks they allow), they’ll be able to make fully informed decisions about ad space forecasting, segmentation, targeting, allocation and pricing. This helps them to extract the maximum value from their sites and uncover new advertising opportunities—the gold that’s buried under their own sites.

4. Betting on openness
An open ecosystem drives meaningful results for publishers. When a wide range of buyers can bid for a publisher’s ad space, through an advertising exchange or network, this creates more competition for that ad space, while giving publishers choice over whose ads they want to appear. On the DoubleClick Ad Exchange, an enormous number of advertisers, belonging to over 50 ad networks, compete for publishers’ ad space. Of course, at the same time, we’re also providing publishers robust technologies and controls that can block any unwanted ads or networks.

Similarly, we believe that one of the best ways to encourage innovation is to open code to the web developer community. Look at the incredible mashups that have been created through the Google Maps API, or the range of mobile devices that have been created from our open source Android code.

This same approach can generate significant advantages for publishers. When we rolled out the upgraded DoubleClick for Publishers, we launched a new public API. This gives publishers and developers the tools to drive innovation and deliver value-adding “advertising apps” for publishers—like inventory analysis, sales workflow tools and more—without having to build an ad server from scratch. This will help drive the next generation of better, more valuable ad innovations.

5. Everything is going to be “display”
Display advertising is about much more than ads in web browsers. People are watching video, reading newspapers, magazines, books and listening to digital music at an ever-increasing rate. They’re turning to a plethora of new devices—smartphones, tablets, e-readers and even video game consoles. We’ve designed our platform, and are continuing to invest in it, to give publishers a single base that can deliver ads into this expanding world—including streaming video, mobile ad delivery and more.

Looking forward, what we call “display” today will just be “advertising”—a single platform that can coordinate an advertiser’s campaign across streaming audio ads in car stereos, interactive mobile experiences on smartphones, and HD video ads on set-top boxes. Imagine if that single platform could optimize the campaign, automatically delivering the best-performing ads, best returns and best mix, across all those platforms. That’s the future we envisage.

An exciting time ahead
We’re unapologetically optimistic about the future of display advertising for online publishers. There’s great innovation taking place in this area that will make the current landscape look primitive within a few years. We’ll keep working hard to help all publishers take advantage of these opportunities.

Display advertising: “WATCH THIS SPACE”

Last year, the travel industry—like many others—was having a difficult time. To grow its business, Hawaiian Airlines created and ran an engaging and interactive display ad campaign on the Google Display Network (comprising over a million partner websites, as well as Google sites like YouTube), encouraging people to fly to Hawaii. The campaign worked. Hawaiian Airlines increased online ticket orders and revenues by three percent in a very difficult year, and now spends 15 percent of its advertising budget on the Google Display Network.

We’re now proud to see thousands of great display advertising stories like this every month—from large and small advertisers. If you’ve read this blog or the press over the past few months, you’ll know that display advertising is no longer just the “next big business” for Google—it’s already central to what we and our clients do.

Advertising with Google used to be all about four lines of text, on Google.com and on our partner sites. No longer. Did you know that, outside of ads alongside search results, more than 40 percent of the ads that we show are now non-text ads? And that doesn’t include the 45 billion ads that our DoubleClick advertising products serve every day across the web.

We get excited by display advertising for a number of reasons. First, we now know that we can use all the technology and expertise that we’ve developed in search and search advertising to improve display advertising for users, advertisers and publishers, right across the web. Second, helping advertisers and publishers to easily deliver the most engaging, relevant, creative and valuable ad contains the sort of huge technical challenge that we love. And third, great display advertising helps to fund great content on the web.

Display advertising has come a long way from the ugly banner ads and pop-ups of the mid 1990s, but there’s still huge improvements to come. As we’ve indicated in previous posts, our efforts are focused on three core areas.

Simplifying display advertising

Many advertisers still don’t bother with display advertising because buying ads across millions of sites in various formats causes too many headaches. We’ve been working to simplify the process for advertisers and agencies so they can buy with ease. For example, our DoubleClick platform manages the complexity of planning, scheduling, measuring and optimizing ad campaigns across the web. And Teracent’s technology can automatically tailor and select the creative elements in an ad, and adjust them based on location, language, weather and even the past performance of ads, to show the optimal ad.

Delivering better performance

We’re focused on helping advertisers get the best results from their campaigns—by enabling creative branding campaigns, precise targeting, wide reach and effective measurement. Over recent years, we’ve added a ton of new features to YouTube and the Google Display Network, to help advertisers get—and measure—the results they’re after. From remarketing to Campaign Insights to video targeting on YouTube, we’re building tools that are helping advertisers get great results and enabling them to run some of the most amazing ad campaigns the world has ever seen.

Opening the display ecosystem

Like search advertising, display advertising should be accessible and effective for every advertiser and publisher, from the smallest corner store to the biggest global brand. Display advertising will grow if it is more open and inclusive. Products like the DoubleClick Ad Exchange, which enable publishers and agencies to buy and sell ad space in an open, competitive, real-time environment, are making it happen. Every day, there are more ad calls on the DoubleClick Ad Exchange than there are trades on all the world’s stock exchanges combined.

Taking rogue pharmacies to court

We work very hard to make sure that ads shown on Google provide useful information for our users. But sometimes we need to take action against ads that violate our policies, as when we block malware ads, or when we filed suit last year against “Google Money” scammers. This is especially true when it comes to advertising for products such as pharmaceuticals, which can be dangerous without the right prescription.

Like many online services, we have struggled with this problem for years. It’s been an ongoing, escalating cat-and-mouse game—as we and others build new safeguards and guidelines, rogue online pharmacies always try new tactics to get around those protections and illegally sell drugs on the web. In recent years, we have noticed a marked increase in the number of rogue pharmacies, as well an increasing sophistication in their methods. This has meant that despite our best efforts—from extensive verification procedures, to automated keyword blocking, to changing our ads policies—a small percentage of pharma ads from these rogue companies is still appearing on Google.

So this morning we filed a civil lawsuit in federal court against advertisers we believe have deliberately broken our rules. Litigation of this kind should act as a serious deterrent to anyone thinking about circumventing our policies to advertise illegally on Google. As we identify additional bad actors, we will add them to the lawsuit. Rogue pharmacies are bad for our users, for legitimate online pharmacies and for the entire e-commerce industry—so we are going to keep investing time and money to stop these kinds of harmful practices.

Finding your hidden treasure: international campaigns with AdWords

In 2000, Antoine Assi founded Middle Eastern export website www.aldoukan.com—it was one of the first e-commerce businesses in the Middle East. He was just 20 years old and he made time to develop the business in between computer science classes at his university. He needed a way to advertise his website from the comfort of his own dorm room, so he decided to test out Google AdWords.

His friends didn’t believe him when Antoine said he was going to sell and advertise traditional Middle Eastern foods and goods online. However, by 2004, his business had grown so rapidly that he decided to take leave from school to run it full-time. He then started his second company, www.mosaicmarble.com, which sells handcut decorative tiles online internationally.

Antoine believed there was a gap in the mosaic market and he wanted to share these artistic and historic decorations abroad. He knew there was a market for these tiles internationally—he just didn’t quite know where the opportunity existed. To identify these international growth opportunities, Antoine built on his knowledge of AdWords: He ran several AdWords campaigns, each targeted at the location and language of the test country.


From there, Antoine measured sales and percentage of website traffic from each country and campaign. He ended campaigns for countries with low sales volume and invested in campaigns for countries with higher sales volume and greater return on investment. Where he saw steady product sales, Antoine even had the company website translated into the language of the successful host country. As you can imagine, translating the site to the language of a country in which he’d already seen success only further promoted sales in that location.

Antoine refers to his AdWords campaigns as his hidden treasure, telling us that “the second month we started advertising on Google, we started feeling overwhelmed by the orders and the inquiries... We had to hire new employees on a weekly basis.”

Mosaic Marble quickly grew from two employees and eight artists to more than 40 employees and 120 artists. And the company’s website is now available in seven languages: Arabic, English, Finnish, German, Italian, Portuguese and French.


In addition to helping him expand his business, these international campaigns helped Antoine and his colleagues share these cultural icons with a larger part of the world. There are now homes and public spaces adorned with these ancient Greek creations in more than 50 countries worldwide. “Due to Google,” says Antoine, “we have customers such as the President of Congo, the Dubai Minister of Internal Affairs, the Princess of Jordan, and the Royal Music Academy of London.”

What does the future of display advertising look like?

This afternoon, we gave a keynote address at the Interactive Advertising Bureau’s MIXX Conference in New York, entitled “Display 2015: Smart and Sexy.”

As you know by now, we’re investing significantly to make display advertising better for users, advertisers and publishers. Display advertising really is at the heart of what we’re doing at Google these days. 99 percent of our top 1,000 clients are now running campaigns on the Google Display Network. And last year, they increased their spending on display advertising by over 75 percent.

Today, we explained why we think display advertising is about to go through the biggest and most important revolution in its history. We made seven predictions about where display advertising will be in 2015:

• 50 percent of ad campaigns will include video ads bought on a cost-per-view basis (that means that the user will choose whether to watch the ad or not, and the advertiser will only pay if the user watches). That’s up from very little today.
• Today, advertisers are starting to deliver ads that are tailored to particular audiences. Many are using real-time bidding technology, so that they can bid on the ad space that they think is most valuable. In 2015, 50 percent of these ads will be bought using this real-time technology.
• With smartphone growth skyrocketing, mobile is going be the number one screen through which users engage with advertisers’ digital brands.
• Today, the “click” is the most important way that advertisers measure their display ad campaigns, but it’s not always the best measure—especially if an ad campaign is designed to boost things like brand awareness or recall. With new measurement technologies emerging, in five years, there will be five metrics that advertisers commonly regard as more important than the click.
• Just like most news articles on the web today can be commented on, shared, discussed, subscribed to and recommended, in 2015, 75 percent of ads on the web will be “social” in nature—across dozens of formats, sites and social communities.
• Rich media formats work. They enable great creativity and interaction between users and advertisers, but today they only represent about 6 percent of total display ad impressions. That will increase to 50 percent, for brand-building ad campaigns.
• All the investments that are making display advertising smarter and sexier will help publishers increase their revenues. Display advertising is going to grow to a $50 billion industry in five years.

We also wanted to visualize the face of the display advertising revolution, so we demonstrated four exciting new technologies:

• We demonstrated some new video ad formats we’ve been testing on YouTube that we’re calling “TrueView.” These will roll out later this year. These ad formats give people the option to skip an ad if they don’t want to watch, or to choose from multiple ads the one they want to watch. Importantly, advertisers only pay if the user chooses to watch their ad.
• We showed some of the things that are becoming possible with our new Teracent technology. This technology can dynamically alter the creative elements of an ad in real-time to make it more relevant and effective, depending on factors like geographic location, language, the content of the website and the time of day.
• You might be familiar with Google Goggles, a way to search the web on mobile devices just by taking a picture. We gave a preview of some experimental uses of Google Goggles that could one day enable advertisers to deliver great display ads to users. Imagine pointing your phone’s camera at an ad for a car in a magazine, and having the car appear in 3D in your mobile device. Or pointing at a movie poster and having the movie trailer play in the device, right in your hand. No QR codes, no downloads!
• We even showed a fun example of what rich media can do—our speech was broadcast live in a number of expandable ad units across the web, and was updated with tweets in real time.

We think that display advertising has a pretty exciting future and we’ll continue our work to make it even better. Thanks to everyone who came along to watch in New York, or who tuned in online. If you didn’t get a chance to see it, our speech will be available here later today.