Google’s just announced that they are starting testing site-targeted pay-per-click. Currently that is available only as CPM (cost per thousand.) It’s pretty clear that Google stands to make more money from a CPC model using site targeting as advertisers will be able to become extremely precise in their placements.
It will change the way I think about a few of my clients’ campaigns. I’m certain its going to increase costs in some cases as we’ve been running consistantly at $8 CPM on some great placements. The quality score calculations must be pretty complex for this kind of ad, as the site and the landing page are highly variant – unlike the SERPswhich have a predictable presentation. I’m thinking it will be pretty hard to know what these ads are going to cost and even harder to stay consisent.