Google, the Web search engine which attracted a loyal following in part because its simple Web site is uncluttered by obtrusive graphical banner ads, has now decided to sell the sort of ads it scorned.
The graphic ads will not appear on Google.com for now. But they will appear on the sites of other Web publishers on which Google sells advertising. That segment of ad sales is a fast growing part of Google's business. Until now, the advertisements on other sites have been a few words of text and a link to the advertisers' Web site.
Now advertisers will have the option of adding a graphic image in addition to their text ad. But the advertisers will have no guarantee that the graphic version will be shown.
Google's computer system will decide whether to show the text version or the graphic version of the ad, based on its calculation of which would draw the most clicks from users. Advertisers bid how much they will pay for each click, regardless of whether it comes from a text or graphic ad.
Tim Armstrong, Google's vice president for advertising sales, said that in some cases bids may rise if advertisers get better results from graphic ads, but that is not certain: "This model lets the advertisers pick their price."
For Web site operators, Google's move is a mixed blessing. For smaller sites without their own ad sales departments, Google may be able to provide them with even more ad revenue. Many already find Google's text ads to be a significant revenue source.
But larger sites are worried that Google's new graphic ads would bring down the price of their own graphic ads. Google is also entering a field with established players. Companies like 24/7 Real Media and Advertising.com have assembled networks of sites on which they sell graphical ads.
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