• by Wendy Davis  @wendyndavis, July 20, 2005

Media buyers and planners are of mixed minds about Google's entry into the CPM marketplace, according to a recent study by MediaPost and Deutsche Bank. Google in April announced plans for a network in which advertisers could purchase image ads on a variety of publishers' sites on a cost-per-thousand impression basis. Agency media executives were asked what impact they think the new service will have on the industry, in terms of inventory availability, pricing, and/or their willingness to buy from major established networks and publishers. (See related story, "Deutsche Bank: Online Ad Spending Up 11 Percent in Q2,"Online Media Daily, July 18).

Opinions ran the gamut, with some of the 75 executives to answer the question saying the move would benefit advertisers, while others indicated that premium publishers would ultimately benefit.

"Competition is always a good thing for a buyer," answered one executive who thought Google's entry into the CPM market would benefit advertisers. Similar opinions included "[will] help bring down cost across the industry," "initially should result in a decrease [in] CPM," and "will deflate pricing for other properties."

At least one media buyer indicated a willingness to give Google's network a try. "We are ready to spend at least 10 percent more on any available inventory to start, and as much as is available if it converts," the executive offered.

But not everyone was enthusiastic. "At first there will be an impact from some groups jumping on the bandwagon. That will level out though, because there is no guaranteed price or out-of-pocket cost, so it will be tough to convince your larger advertisers to switch," speculated one respondent. Another said: "I will still use those cost-effective networks which have performed."

In the meantime, many adopted a wait-and-see approach. "Google has a great reputation, and the new network will be worth testing at any rate, but if the performance is not there as a media buyer, I would continue with what I have been doing, continuing to work with the networks I know," wrote one.