Double Click Integration with Google Adwords Impacts Google Adsense

Amalgamation of Google Adwords – Double Click creates a bigger Ad market space for Google Adsense

Google Adsense officially made a big push into display ads on 18th September 2009. This big push was through DoubleClick Ad Exchange (online media advertisement) ad network that Google acquired in 2007. The DoubleClick ad network will be directly integrated into Google AdWords. With this content network will expand and thus AdSense publishers can see more numbers of ads. It is expected that with this integration higher paying ads will be available for adsense publishers. Google AdWords will consider your ad for DoubleClick Ad Exchange only when your ad is contextually relevant (for keyword-targeted ads) or placement-targeted appropriately. Here's how Google AdWords works with DoubleClick Ad Exchange to push up and promote a consistent auction through digital advertising process.

* Publishers offer inventory to DoubleClick Ad Exchange.
* DoubleClick Ad Exchange requests the first- and second-highest qualified AdWords bids (on an eCPM basis, and modified by Quality Score), which are reduced by the Google AdWords revenue share. (This reduction means AdWords bids can be compared fairly with bids from other ad networks that take into account their respective revenue shares.)
* The net values of the two highest AdWords bids are compared with other DoubleClick Ad Exchange advertiser bids and DoubleClick Ad Exchange publisher minimum CPMs. Bids below the minimum CPM are ignored.
* Qualified bids from other DoubleClick Ad Exchange advertisers, the two highest net bids from AdWords, and the publisher's min CPM are then reduced by the publisher's revenue share.
* If the publisher uses dynamic allocation (a DoubleClick Ad Exchange feature that automatically allocates ads to the sales channel that pays the most), the net values are treated as other bids and compared with values from ads in the publisher's ad server.
* The highest bid (which could be the publisher's min CPM or an ad from the publisher's ad server) wins and is charged the gross rate of the second-highest bidder. If the winner is from AdWords, the reduced rate (from step two) is adjusted back up to the amount before the AdWords revenue share was taken.

Note: The combined Google AdWords and DoubleClick Ad Exchange revenue share is designed to approximate the revenue share associated with advertising on Google AdSense sites directly.

With the Double Click ad exchange integration with Google Adwords the primary objective of Google is to simplify display ads buying and selling process. This will open up the complete ad monitoring system but SEMs would not like Google to handle their Ads web analytics and ultimately performance can be enhanced that can be more accurately measured by advertisers and agencies.