Google AdWords is running limited testing of a feature which lets its advertisers block domain parking sites which their AdWords ads will be served on; specifically ‘Domain Ads’ and ‘Error Page Ads.

If Google rolls out full force with this blocking of the serving of advertiser AdWords ads on domain parking sites, this could potentially be a real blow to domain registration and parking companies, leading to deals with other paid search engines to fill the void.

Before advertisers begin blocking Domain Ads however, put some thought into the source of this traffic, which may be type in URL traffic or organic search traffic, and may convert quite well for you. Just because a user comes from a domain parking page does not mean that user will not buy on your site.

I’m sure one fear Google has with a widespread rollout of Domain Ads blocking is that advertisers will begin blocking these ad distributions without taking into account that they could be cutting off a valuable lead and business generation vehicle.

According to a thread in DigitalPoint (hattip Barry), not all advertisers will be blocking their domain parked ads:

Domain Ads and error pages have ALWAYS performed best through ALL accounts that we manage so there is no way they will be excluded.

So, again, before blocking the serving of your AdWords advertisements in Domain Ads, be sure that those ads do not convert for you, because if they do, you’ll be losing customers for your company.