Rick Egan, VP, Group Account Director, argues that Google’s move “makes a lot of sense. They are trying to shake up the traditional display networks to get more people to move their budget dollars to them. Advertisers love the idea of cost per viewable impression instead of CPM. Many smaller advertisers understand the fact that if they are not doing direct buys, then their ads are not going to show in a spot that is going to influence a buying decision or make people aware of their brand. If a cost per viewable impression model is more profitable, then publishers will also abandon the CPM models where the DSPs keep the lion’s share of the fee for a more democratic model in which they can more greatly profit.”
While Google’s new viewable impressions option may appear to be exceedingly generous to advertisers, the new model will entice more advertisers to spend money on display ads, ultimately benefiting Google’s bottom line as well. If this new model becomes successful, it will be interesting to see if the other search engines follow suit and start to offer similar options in the future.