Nikesh Shetty

Girisha Salian
Tejas Shah- 24

MIM – Sem IV
 Introduction
 How Paid Search Engines Works
 Stats
 Advantages
 Disadvantages
 Paid Search Models
 Google gets 75% of Paid Search Clicks i.e. three of
every four paid search clicks happen on Google
 75 cents of every paid search dollar is spent on
Google as per latest quarterly report from Efficient
Frontier (Advertising agency )
 Visitors who arrive at a retailer’s site from paid
search ads are 50% more likely to buy than those
who come from clicking on a natural search link
 Conversion rate from paid search is 2.03% versus
1.26% from organic search, according to the study
as reported by Internet Retailer
100%
90% 24.80% 24.30% 24.00% 24.40% 21.00%
80%
3.50% 3.50% 3.90% 4.60%
70% 4.70%
60%
50%
40% 74.40%
71.70% 72.30% 72.10% 71.00%
30%
20%
10%
0%
Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009
Google Bing Yahoo
1. Highly targeted
2. Low wastage
3. Predictability
4. Speed
5. Control
6. High conversion rates
7. Improved Branding Recognition
8. Higher Customer traffic
9. Instant Advertising Deployment, Tracking and
Flexibility
10. Greater Suggested Sales
1. Competition
2. Higher costs than other media
3. Favours larger brands
4. Complexity of managing large campaigns
5. Limited reach
6. Click fraud
• Are they Strategic Thinkers?
- To have a long term view instead of short term results
• Are they Certified ?
- Look for their search engine certifications
• Do they Follow Industry Best Practises ?
- Partner with ppc practises such as blockades, Click Through
Rate (CTR) inflation, trademarks infringement, etc.
• Can they Integrate your Online Marketing Efforts?
- Track record in all areas of online marketing such as Natural
optimization, audio/video and traditional advertising outlets.
 Do they Understand Usability and Conversion
Design?
 PPC (Pay-Per-Click) advertising model
 CPM (COST PER THOUSAND IMPRESSIONS)
ADVERTISING MODEL
 FEATURED LISTING ADVERTISING MODEL
 The Independent Search Engine & Directory
Network
 advertiser bids on keywords
 highest bidder getting the best advertising

spot at the top of the results

 top two PPC-providers are:

http://adwords.google.com/
http://www.content.overture.com/d/ - Now
owned by Yahoo!
 Advantage
serve large pools of consumers online
let you target specific search keywords.

 Disadvantage
high cost of bids for certain keywords
poor conversion rates on purchased clicks
click fraud
 Instead of total cost for an advertising campaign, it
states its ad rates at the cost per 1,000 views
 CPM advertising is most often associated with

banner advertising,
but can now be purchased for text ads as well. This
type of advertising is available from
http://adwords.google.com/
http://www.realtechnetwork.com
Advantage
CPM advertising can be cheaper than PPC

 Disadvantage
type of advertising is that you need a good handle
on how well your advertising is performing.

Your advertising copy can make or break you

 advertisement appears in the purchased location for 30
days, 90 days, or one year.
 can be bought on individual websites and even

on networks of websites
Example :
Geek Files ( http://www.geekfiles.com/advertising/ )
Geek Files offers various Featured Listing placement
options with
ad rates ranging from $19 to $179 per month.
 Program that allows you to purchase Top Ten
exposure for your website(s) across their network
 The network is comprised of specialized search
engines, search directories, and article directories.
 keywords are displayed across the entire ISEDN
system.
 Advantage:
you can see your ads appearing on pages in a
position that will attract more attention and click-
through traffic to your website.

 Disadvantage
Although large, does not yet have the traffic
volume of the major engines
• eBrandz has helped a lot of clients realize the true
potential of Search Engine Optimization and Paid
search marketing
• helped in making search engines understand that
the website targeted visitors looking for 5 star
luxury resorts in Kerala.
• Result - Enquiries over website have seen an
increase -94 % increase in room books from the
website and 110% increase in room revenue