Google Promotes New Ad Units

Google has introduced an ad unit designed to be an interactive version of the so-called circular or flyer ads found in Sunday newspapers.

“The circular is a billion dollar market. How do you transition from a paper-based to digital [experience]. This, we think could be the answer,” said Jerry Dischler, director, product management, search ads, at Google, during the Interactive Advertising Bureau’s Mixx conference yesterday.

Macy’s and Best Buy are launch advertisers.

The ad will feature products based on a person’s location and products searched for. “Let’s say I am looking for a camera on sale. I would link through to Best Buy’s weekly ad and see an ad designed especially for me,” Dischler said. “They know I am in New York and looking for a camera, so the most relevant products are shown front and center.”

During the conference that coincided with Advertising Week, Google showed attendees other ad units – at least one other for the first time and others rolled out over the past year.

– A media ad that displays a movie trailer or other video on the Google search results page. “On Google, most people who are looking for movie titles are looking for previews,” Dischler said. In addition, 25 percent of people looking for movie titles on Google were using either mobile phones or tablets, he said.

– A design feature in a mobile banner ad that provides a 3D-like effect. Let’s say an ad features the Manhattan skyline. As someone moves the phone, the image shows a slightly different vista.

Dennis Woodside, president, Americas, at Google, said the company’s advertising strategy is being driven by three trends:

– Personalization. “People want information that’s relevant to them. We have more and more signals about individuals…so we can respond with a much more personalized experience in natural search and advertising.

– All advertising is becoming opt-in. “Consumers want ads on their own terms… All advertising, in our view, is becoming opt in.” An example of an opt-in ad is the TrueView video ad available on YouTube. With that ad format, a person can decide whether or not she wants to watch an ad and the advertiser only pays Google when someone watches the ad.

-Everything is going mobile. “The power to use what the phone knows – where you are, the temperature outside, the time of day. There’s a lot of information that’s personal to me that can help target advertising,” Woodside said. Citing one example, Woodside said that Google is seeing 20 to 30 percent of all searches about telecom services occur on mobile devices.