The End of the Google Content Network?

The end of the Google Content Network may or may not happen – but high-paying eCPMs to publishers for quality content is close.

The Google Content Network as an advertising medium is potentially facing its greatest threat – itself. Over the last year, Google has been quietly and slowly modifying the Google Ad Manager Platform into DART for Small Publishers.  At the same time, both the Google Content Network and the Google Ad Exchange platform have also been merged and integrated into both DART for Publishers and DART for Small Business publishers.  In essence, advertisers on the 24/7 Real Media ad network can now show up in ad space filled through the Google AdSense publisher network or, if allowed, any publisher site utilizing DFP or DFP for Small Business.

Already publishers are finding their Google AdSense inventory being filled by display ads from Verizon and the University of Phoenix.  For advertisers, the Google content network is both a unique and promising opportunity when properly monitored.  What sets the Google content network apart from other ad networks is the ability to target niche forms of content at a contextual level which in turn garners audiences that would otherwise be too niche to reach.  The downside to this network is that it is often filled with irrelevant spam sites designed to do nothing more than to encourage clicks within these specific niche audiences.

While on the one hand Google has very clearly not done enough to monitor the growth in spam sites within the Google content network, they have created an endless number of niche networks offering truly unique and specialized audiences.  It would be impossible and not financially worthwhile for just about any publisher to build these niche networks otherwise.  On the other hand, the merging of an open display ad network with other ad networks and exchanges could potentially dilute the Google AdSense network in terms of relevance to publishers and advertisers alike.

This can easily lead one to wonder what Google’s long-term plans are for the Google Content Network.

Theoretically, it makes sense that, long-term, we will most likely see Google merge contextual relevance of ad space with a person’s browsing history and demographic makeup.  With DFP, DFP for small business, Google AdSense and the Google AdX merging into a single or at the least shared platform, the technology will be in place for the contextual relevance and targeting technology of Google’s AdSense program to be deployed across any DFP managed site.

By default, this would mean the end of the Google AdSense network as a singular entity, while the technology would then become a targeting component within Google AdX or across all DART products.  For online publishers this should be potentially worrisome.

Publishers often receive page eCPMs ranging from $10.00 to $50.00 on niche, audience-focused sites – much higher than the $2.00 to $3.00 ad networks typically pay for 3 ad units on a page.  For this reasons, small entrepreneurial website owners and publishers alike have found value in integrating Google AdSense ads around their content and by default, taking the time to create the content.

If, however, contextual targeting was made readily available to every ad network on every website, this would ultimately lead to a dilution in the eCPM value currently paid to many AdSense publishers as inventory availability increased.  The one source which currently does pay publishers a premium for their content would actually disappear as a standalone media buying/filling source for publishers.

For advertisers – the advantages of contextual based advertising within every campaign regardless of the ad network or exchange only further enhances media targeting and performance metrics.

For publishers – the end of the Google AdSense network means the elimination of the last automated source of high quality payouts for ad space and quality content.