Thursday, September 09, 2010

How Much Should You Pay For An “A?” From Google Adwords to Adletters.

Google is calling their new search page technology “Google Instant.”

Type in a letter in the Google search bar and results come up. No need for complete words anymore. Google will complete your thought for you.

While an “a” as a first letter could lead to many different words, Google will give you their best bet with every letter you type.

Which means they get to plug in different advertisers for every letter you type.

I typed in the letter “n”. Google assumed I was searching for Nissan. I haven’t searched for Nissan since, well, ever.

I then typed in an “I”. Well, of course, Google thought I was searching for Nike. I mean who wouldn’t think that? Especially since they're a large advertiser with a large budget.

“NI…” obviously Nike. Not night, or nile, or nine, or nice, or nincompoop.

I then typed in a “k”. Again, Nike. Which should probably piss off Nikon, which I was actually searching for.

Only when I went and typed in an “o” did it go to Nikon.

I don’t know about you, but when I type in a word in the Google search bar, I’m not stopping at every letter to see if Google has figured it out yet or not. I’m looking at the search bar to see if I spelled the damn word right. Who has time to look at anything else?

Google said it will save people two to five seconds per search. Across the board, it will save users some 350 million hours a year. That’s impressive.

How much more it will make Google in advertising dollars will also no doubt be impressive.

But here’s the most interesting thing about the whole Google press conference yesterday. Google has determined how long it takes for an impression to make an impression.

Three seconds.

Yep. Google has decided that a cognitive pause is three seconds long. What this means is that if a user pauses on a page for three seconds or more, then the contents of that page were being comprehended well enough to count as an impression.

If an advertiser is paying a $20 CPM, then they’re paying two cents per impression. Two cents for three seconds according to Google.

Perhaps advertisers will find this to be a fair deal.

All I know is that most advertisers have always felt that paying two cents per impression meant that they were getting thirty seconds worth of a viewer’s time.

Not anymore. Not according to Google.

Two cents is now worth three seconds.

If this doesn’t kill off CPM as a way to buy media, then nothing will.

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