Hello,

We're pleased to introduce two changes to our advertising
services that will enhance the quality of the ads served on your
site and help grow our base of advertisers.

Better and Better Ad Relevance

First, we're enhancing our targeting technology to deliver ads
that are even more relevant to the content on your site. Over the
past year we've been refining the technology we use to deliver
ads to content pages by leveraging data from across the Google
Network, monitoring results, and feeding this information back
into the system - in other words, our technology is becoming
smarter all the time. Now, in addition to understanding the
overall meaning of a page, our technology determines the
relevance of concepts found on a page to pick better performing
ads. With this change we expect to deliver ads that better
complement the content on your site and provide even more value
for your users. The bottom line: increased relevance, and higher
clickthrough rates.

Smarter and Smarter Pricing

Second, we're introducing enhancements to our pricing model for
advertisers. Google's smart pricing has always provided better
placement for better performing ads, and reduced the cost of a
click to the least amount possible for an advertiser to stay
above their competitor's ad. Now, with the new AdWords pricing
model, we'll also automatically adjust the price of clicks across
the Google Network based on their expected value to the
advertiser. A number of factors will be taken into account when
calculating the expected value, including the keywords or
concepts that triggered the ad. For example, a click on an ad for
digital cameras on a web page about photography tips may be worth
less than a click on the same ad appearing next to a review of
digital cameras.

For advertisers, each and every click will deliver the strong
return on investment they have come to expect from Google AdWords
- driving even higher advertiser participation on Google and
across the Google Network.

What to Expect

While these changes will impact different publishers in different
ways, we expect that the combination of these changes will result
in most publishers seeing more relevant ads, and a slight increase
in the number of clicks from ads on their site. A few publishers will
see a decline in revenues. The amount of revenue that a publisher
earns through Google AdSense depends on the content of each web
page, the availability of AdWords ads, and now, the value of the
leads provided to advertisers.

Enhancing our ad targeting and pricing models is an ongoing
effort. With these changes we hope to drive more rapid growth in
our advertiser base and deliver improved relevance - resulting in
an increase in your long-term revenue, higher clickthrough rates,
and higher user satisfaction.

We look forward to providing you with the most effective
advertising available.

We welcome your comments and questions about these improvements
to Google AdWords and Google AdSense by email at
adsense-support@google.com.

Sincerely,

The Google Team