Google does not take third party ad tags. That means that if you want to advertise on Google, you have to run your creative through Google. But a huge portion of the advertising world that Google is now going after – graphical CPM ads – runs through third party ad servers like DoubleClick.
Now, DoubleClick is for sale, the WSJ reports. Actually, I’ve heard it’s been shopped since early last year, but anyway….Microsoft is seen as an interested suitor.
Google can’t let this stand. It’s a major risk to its business to force advertisers to change behavior – it needs a third party ad serving solution.
So it will, without a doubt, build one. More soon.
Indeed, this would allow Google to not only offer conversion tracking but do so cross-platform (CPA,CPM, CPC). This solves a BIG problem — duplicate conversions. It also creates a point of differentiation in the CPA space: Ad targeting. From what I can tell, DoubleClick’s ad targeting doesn’t extend across its Performics unit’s CPA-focused campaigns. Google’s could (first?).
Aside from that, third party tracking is a real pain point for networks; networks that work on all payment schemes — in particular, CPA. Why would Google want to replicate that problem unless it can centralize (I suppose that’s what you’re getting at, John)?
I suggest centralization is requisite as networks are already fighting to take credit for “action conversions” since advertisers continually strive to understand what (creative) is working (and what isn’t), where. In the real world, advertising works best when multiple strategies are employed but who am I to question siloed advertising!
My point: CPA conversions are often duplicated among CPA and affiliate networks (just as conversions are duped in dueling CPM campaigns running independently via separate ad servers). Duplication = bad and costly to advertisers. Potentially very costly.
Mix in Google (King of Scale) and you’ve got quite a headache for advertisers — a very serious (costly) operational wrinkle in the “pure performance-based” CPA model. The problem becomes exponentially larger (perhaps even prohibitive) to many advertisers who work on a high CPA payout (i.e. $50 per lead).
And what of already existent CPA fraud / bad leads? Yikes.
So… the answer is for Google to create a third party tracking platform that marries “action/conversion credit” data and possibly mixes in other goodies like ad targeting? Am I understanding this correctly?
I think most know that Google is building a publisher-side ad management server. It’s supposed to be out in April. I know people that claim to have seen screenshots several months ago.
newsmax.com – check out the source code