Today, Google unveiled a new ad format on the Google Display Network (GDN) called magazine ads in which text ads are converted to show as “display-like” ads on publisher sites that have opted only to show display ads in their AdSense accounts.
The implication for AdWords advertisers is that text ads on the Google Display Network will now compete with display ads in the auctions. A winning text ad will then be converted to the magazine ad format.
The company stated on the AdSense blog, “we’ve created a new format allowing text advertisers to increase competition on your display-only ad units while maintaining a design aesthetic suitable for display.” In other words, more ads entering the auction will likely lead to higher CPCs and more ad revenue.
These ads could perform quite well and offer more reach to text ad advertisers. However, it is not clear, yet, if advertisers will have controls or reporting on this format. Another question is whether an advertiser’s display and text ads will end up competing against each other and raising the cost-per-click. We have inquired with Google and will update here when we learn more.
The magazine ad format is automatically enabled for AdSense publishers that have chosen only to show display advertising. Publishers do have the option of disabling magazine ads if they wish.