Friday, February 12, 2010

Out of context: Google's new ad retargeting


Google has launched advertising retargeting. So what does it mean?

The new ad program, like most Google innovations, is deceivingly simple. Now when you search for a term at Google.com, say "golf equipment," you'll not only see text ads for golf stuff next to your immediate Google search results, but hours later Google will continue to serve you golf-related ads when you surf over to news sites far from the Google search window.

The path of consumers responding to ads is very fragmented, and Google appears to realize it's often more than search-click-buy. While Google is best known for its AdWords "sponsored link" ads that drive billions in revenue by popping up next to search results, it also runs an AdSense program that places similar text ads on web sites based on the editorial material in the copy. AdSense is a way for web publishers to make a little money, but has always been the ugly stepchild next to AdWords, largely because contextual placement is difficult for any computer algorithm to get right. An article on "raging fires sweep through California" could attract context ads for "hot hotel deals in Los Angeles." Contextual advertising often misfires so badly that some bloggers call it madness.

But by tapping data from the user's recent searches, Google can make contextual ads far more relevant. Now, it doesn't matter as much what material is inside the article; what counts is your recent interest in a specific series of products. A cynic might say this is Google's way of admitting contextual ads don't work. Marketers may rejoice as these ads start getting better results. Either way, be careful what you search for ... because Google is watching and will remember.

Image: Gin Able

3 comments:

Jason said...

We’re always going to have to deal with ads, so isn’t a bit better if they’re relevant to us? Relevancy is where retargeting can be even more effective than other marketing strategies. How so? It retains the interest of visitors who are actively looking for your product.

As for concerns about “ad bombardment”, this can be avoided by setting a frequency cap that limits the number of times your ads are displayed. But that’s just one way to avoid irritating potential customers. Here’s an interesting article about what you should and shouldn’t do when it comes to retargeting.

Katie said...

By now, Facebook's behavioral targeting has made global headlines. Surely, you have heard of their efforts in utilizing extremely personal data for advertising. In the case of Facebook, yes, targeted advertising was taken to the next level in that it sent targeted advertisements and followed people while knowing what they looked like, who they were and, basically, their entire life story. Is this always the case? Is behavioral targeting that scary?

I agree with Jason. Most targeted advertising companies utilize ANONYMOUS pixeling, too.

xlpharmacy.com said...

They have been involving impressively speaking. After they bought Double click (I think that it was called like this the ad company).