Google to drop CPC and revert to CPM

News just hit the wire that effective immediately, Google will no longer accept Cost Per Click (CPC) bids. Apparently, this is in anticipation of more branding dollars moving online and Google will still utilize Clickthrough rates in determining Quality Score, but will charge for ads on a CPM (Cost per Thousand Impression) basis.
My sources tell me that the new CPM rates are expected to earn more effective revenue with advertisers that have low clickthrough rates and also, allow them to embed advertising within the newly acquire YouTube network.

With this change, Google will also be showing image ads on SERP (Search Engine Results Pages), in the form of a 234×60 banner, after the search box. These image ads will start at a $100 CPM rate and bidders can participate from 1 April 2007 (today).

Yahoo have responded to this by announcing that they will continue their CPC policy and remove image ads from the My Yahoo homepage in an effort to promote their search box more prominently.

UPDATE (3 April 2007): THIS WAS AN APRIL FOOLS JOKE – DO NOT TAKE IT SERIOUSLY

Comments

  1. good one! hehehe, had me thinking for a bit.

  2. Hilarious! I wonder how many people rushed to their Adwords account only to find out they were had. Good one! =0

  3. Hilarious! I wonder how many people rushed to their Adwords account only to find out they were had. Good one! =0

  4. Ed Hardy says:

    Dude … I googled for that as someone was mentioning something like this lately. Good its just a April Fools Joke.

  5. Ed Hardy says:

    Dude … I googled for that as someone was mentioning something like this lately. Good its just a April Fools Joke.

  6. Don Ed Hardy says:

    Thank god, there was this line:

    “THIS WAS AN APRIL FOOLS JOKE – DO NOT TAKE IT SERIOUSLY”

    I was shocked at first :D

  7. Don Ed Hardy says:

    Thank god, there was this line:

    “THIS WAS AN APRIL FOOLS JOKE – DO NOT TAKE IT SERIOUSLY”

    I was shocked at first :D

  8. Emo says:

    First April is long ago. My luck – I read some of the comments first and decide then to read the article or not to read it :)

    have a nice night

  9. Emo says:

    First April is long ago. My luck – I read some of the comments first and decide then to read the article or not to read it :)

    have a nice night

  10. Hardy says:

    LoL! Lookin’ forward to next April 1st!

  11. Hardy says:

    LoL! Lookin’ forward to next April 1st!

  12. 1st April is coming soon, for sure…

  13. 1st April is coming soon, for sure…

  14. Emo Boys says:

    F***… I read this was freaking out for a short period of time… today we have feb 2008 and i wasn’t thinking, that this is a last year’s april fool post…. yes you made an april fool out of me… a little late, but you did :-)

  15. Emo Boys says:

    F***… I read this was freaking out for a short period of time… today we have feb 2008 and i wasn’t thinking, that this is a last year’s april fool post…. yes you made an april fool out of me… a little late, but you did :-)

  16. ed hardy says:

    omg, this was an april’s joke yes? because a friend just told me this and i found this post via google

  17. ed hardy says:

    omg, this was an april’s joke yes? because a friend just told me this and i found this post via google

  18. [...] actually been a full year since I announced that Google was looking at reverting to CPM from CPC. The argument was that Google was looking to boost revenues on low Clickthrough Rate [...]

  19. Hardy says:

    nice april joe :) lol

  20. Hardy says:

    nice april joe :) lol

  21. C. Audigier says:

    well we will see…

  22. C. Audigier says:

    well we will see…

  23. Roman says:

    Lookin’ forward to next April 1st!

  24. Roman says:

    Lookin’ forward to next April 1st!

  25. Zwink says:

    I wish that would have happened, their CPC prices are dropping every month.

  26. Zwink says:

    I wish that would have happened, their CPC prices are dropping every month.

  27. gently says:

    Every Year has an April 1st!

  28. imleme says:

    ok thanks a lot ;)
    whats with 1st april?? :DD

  29. Huh… here in Spain (Europe), Fool's day is not in this month!

  30. Blog Tips says:

    thank you for sharing