"Google Introduces Animated Ads"

MediaDailyNews 12-09-04

Google announced it will now allow eye-catching animated GIF banners throughout its AdSense network for publishers. Google intends to continue charging advertisers on a cost-per-performance basis--Some analysts criticized the move, saying that it's a mistake for Google to use a cost-per-click pricing model charge for banner ads--which can have a branding value even if consumers don't click on them. Sometimes, especially with streaming and rich media banners, advertisers don't even call on consumers to take any direct action. For this reason, banners are traditionally sold based on cost-per-thousand impression basis.

The danger faced by Google is that advertisers will get the branding benefits of banner ads, but won't have to pay because consumers might not click on them.