The Search Marketing Advisor Newsletter Article: November 2005, Volume 4, Issue 11
Google & MSN: Ad Targeting Evolves
by Ben Perry, Ph.D., Paid Search Manager, iProspect
Recent efforts on the part of Google and MSN have hastened the evolution of ad targeting in the search space. Google has made a couple of major modifications to the way advertisers use its content network, presumably in an effort to increase revenues from this channel. While there are only so many searches conducted each day, there is a seemingly limitless volume of content pouring onto the Web daily, so making the most of content ads is a wise move.
MSN, on the other hand, recently debuted its AdCenter platform, which replaces the limited Search Featured Sites system and is intended to compete head-to-head with the Google AdWords and Yahoo! Search Marketing programs.
Google
Google has given content advertisers the ability to specify a limited number of negative sites — sites from which an advertiser wishes to receive no traffic at all. This is less a huge leap in targeting than some basic quality assurance to help site owners weed out poorly performing network partners. It is a very useful feature, but one that requires you to dig through your Web analytics to identify sites from which you do not wish to receive traffic.
Google's other program to extend the usefulness of their content network is site targeting. This is basically the opposite of content match and negative sites. Instead of opting into the whole network and then out of certain sites, site targeting allows advertisers to specify only the sites on which they want their ads displayed. Site targeting also operates on a CPM, or cost per thousand impressions, rather than a cost per click. This pricing structure is an obvious attempt to shift advertisers’ focus onto branding value rather than ROI.
This is also a typically clever move by Google, since ROI is the great limiting factor in cost per click escalation. The branding value of an impression is much more difficult to measure than the conversion value of a click. This is one reason most advertising dollars still go to TV, print and radio despite the fact that the computer has become the entertainment hub of so many homes. Brand advertising is Google's ticket into those seemingly bottomless budgets.
MSN
Unsurprisingly, the MSN AdCenter interface for advertisers seems to have borrowed elements from both the Yahoo! and Google paid search programs. Although more similar to AdWords, it lacks the elegant simplicity (at least in appearance) of that interface. AdCenter mostly uses tabbed navigation and takes relatively little getting used to. Just about everything is there that I'd expect and none of it is difficult to find.
In terms of targeting, AdCenter has covered what most marketers now consider to be the basics. Negative matching and geo-targeting are both components of the program. However, MSN goes one step beyond and offers a couple options unavailable on the competing programs. The first is day-parting; MSN offers the ability to favor certain times of day and specific days of the week. For higher end advertisers with bidding tools, this is redundant functionality, but if the other engines offered this, it might render lower-end bidding tools obsolete.
The second new AdCenter offering is the ability to favor certain demographics. This feature is currently limited to favoring one gender over the other and one of five age groups over the others. Still, this is more explicit and user-friendly demographic targeting than is found in any other engine interface I've seen. The case could be made that Google's program is more flexible, although it requires more legwork on the part of the advertiser to determine the demographics of various sites.
MSN's new system allows the advertiser to favor (I say “favor” because MSN makes a point of letting you know that your ads will serve to all groups) one gender or age group over others by allowing a higher bid price for the favored group. This is sensible for both the advertiser and the engine. Kudos to MSN.
Steps Forward
Overall, the MSN AdCenter system attempts to bring targeting options to advertisers that were previously unavailable or at least more difficult to use. Google is allowing some of the same functionality on its content network while adhering to the concept that relevancy is paramount. These moves toward better targeting options for advertisers are ultimately a benefit for all parties. The advertiser reaches a more defined audience, the engine makes more revenue and the user sees more relevant ads.
