Search Advertising

Search Advertising
Online Advertising Payment Models

• PPC or CPC: It is an Internet advertising model where advertisers pay the

hosting service only when the ad is clicked:
• With search engines, advertisers typically bid on keywords.
• Content sites may charge a fixed price per click or may use a bidding
system to determine the CPC as well as the position in which the
advertisement will be displayed.
• Internet users are directed to an advertiser’s website after clicking on an
advertisement.
• PPM or CPM: PPM refers to the amount that is payable by the advertiser
for thousand times that an ad is displayed on the publisher’s website:
• It is one of the oldest forms of payment models.
• To prevent fraud, an ad server may decide to exclude certain non-qualifying
activities such as page-refreshes or other user actions from counting as
impressions.
© Oxford University Press 2017. All rights

3
reserved.
• PPA: PPA is when the advertiser pays the publisher for a ‘conversion’ that
occurs on the advertiser’s website:
• The conversion may be an actual purchase of a product, or may be a
simple filing up of a form that is made available to the user.
• This ‘conversion’ is pre-determined by the advertiser and the advertiser
pays the publisher only on the completion of such an action on the
advertiser’s website.
• PPL/CPL: PPL/CPL is the amount/cost of the advertiser for acquiring a

lead.

4
reserved.
Search Advertising
Search Advertising
• Search advertising comprises advertisements that appear on search

engines. Such advertisements may appear on the SERPs on top of the
page, to the right side, or even at the bottom of the page.
• These advertisements are usually driven by the PPC mechanism.
• Advertising interfaces and mechanisms across the search engines vary and
so each of the search engines need to be accessed and managed
separately.

6
reserved.
Search Advertising
Overall Market Shares of Leading Search Engines

7
reserved.
Google AdWords
• Google AdWords/Google Ads which is driven by Google’s proprietary

algorithm increases the exposure of the website by listing the website
prominently in its sponsored search results and its related search networks.
• Through the Google AdWords interface, the advertiser can edit

advertisement layouts and adjust the budget until the desired results are
achieved.
• Google AdWords consists of two networks, Google Search Network (GSN)

and Google Display Network (GDN):
• The Google Search Network displays ads on all of its search related sites such
as Google Search, Google Shopping, and Google Maps.
• The Google Display Network displays ads on all other websites and platforms
that are either owned directly by Google (e.g., Gmail, Blogger, YouTube, and
Google Finance) or other websites that are a part of the Google ad distribution
network (e.g., The New York Times., The New York Times, The Guardian., The New
York Times, The Guardian, and W3Schools).

8
reserved.
Google AdWords
Google’s Ad Distribution Network

9
reserved.
Google AdWords
• On the Google search engine, the only format of advertisement that is

allowed is the text format (with some images as exception).
• On most of its other properties, the Google AdWords platform may be used
to serve ads that consist of images, videos, and other rich media ads.
• The advertisement format and text can be varied continually and the
advertiser can target the ads to specific geographic locations and
languages.
• The AdWords platform requires the potential advertisers to bid price on

specific keywords that she/he has to pay for every click, that is, the
associated CPC.

10
reserved.
Google AdWords
• Ads are positioned on search and display network pages based on their
AdRank:
• The ad with the highest AdRank appears in the first position and so on
down the page.
• The components that decides the rank of an ad is the bid price and quality
score (QS) that the search engine associates with the advertisement.
• The top factors affecting the QS of an advertisement are click-through-rate
(CTR) of the ad, landing page experience and the relevance of the ad.
• CTR refers to the number of clicks that an advertisement/link receives,

divided by the number of times the advertisement/link is shown, expressed
as a percentage (i.e., clicks ÷ impressions = CTR):
• An increase in CTR increases the QS of the advertisement.
• CTR history of the display URLs in the entire ad-group is available.
• It is often believed that there is a QS for each keyword and that QS stays
with the keyword. The CTR is calculated based on the interaction of the
keyword and the text ad.

11
reserved.
Google AdWords
• To a large extent, relevance is determined by the words used in the text ad

and whether that matches that content of the landing page:
• Relevance among keyword, text ad, and the landing page is critically
important.
• Good relevance leads to high CTR.
• There are various other factors affecting QS:

• Some of these include the account’s geographical performance in the
region where the ad will be shown, server/page load times, and the
presence of privacy policy and contact information that are displayed on
the landing page, among others.
• QS has a bearing on the position of advertisements (AdRank = CPC * QS) :

• Compound effect can lower price and raise position.

12
reserved.
Yahoo! Advertising
• Yahoo! introduced its Gemini platform as the main product that offers
marketers sign up options for search advertisements:
• Allows advertisers to take advantage of a variety of native ad formats
• Allows the advertiser to select a number of keywords that are relevant and
important for the website, and decide how much the advertiser wishes to
pay (bid) for each visitor that visits the site through the search results of
these keywords. More the money paid, higher the ad appears in the search
results.
• Sponsored search provides sponsored listings in search results reaching

over large portion of active Internet users:
• Including Yahoo!, MSN, Excite, CNN, Altavista, Infospace, ESPN, and many
more.

13
reserved.
Yahoo! Advertising
Yahoo! Advertising

14
reserved.
Yahoo! Advertising
• Content match, a feature of sponsored search, enables the advertiser to

reach customers through online publishers, newsletters, and emails:
• The ad will appear next to content such as articles and product reviews
related to the business, that is, depending on the keyword that is specified.
• The advertiser can automate the process of managing keyword bids with
Search Optimizer, which automatically monitors listings to ensure that the
target objectives are met:
• Optimizes complex campaigns to a set cost per acquisition, cost per click,
or return on ad spend goals.
• Sorts keywords into those performing as per expectations and those that
are not.
• Allows adjustment of the campaign for improved results.

15
reserved.
Yahoo! Advertising
• The Marketing Console, a tool that measures the effectiveness of all

online marketing campaigns, may be used to monitor the overall
performance of all advertising on Yahoo!
• The Keyword Selector Tool helps in the selection of keywords and the
View Bids Tool allows the advertiser to see the current maximum bids
and listings for the top advertisers on any search term.
• Yahoo! provides two return-on-investment (ROI) calculators, PPC ROI

Calculator and CPM ROI Calculator.
• Yahoo! offers BrightRoll which allows advertisers to reach audiences on a

large number of partner and publisher websites. Yahoo! also offers
advertisers the Yahoo! Bing Network Contextual Ads program that
enables web publishers to easily and effectively earn advertising revenue.
16
reserved.
Bing Ads
• Bing Ads is a service that provides PPC advertising on both the Bing and
Yahoo! Search engines.
• Bing also provides businesses two separate networks for advertising, that
are, Bing Search Network and Bing Content Network:
• The Bing Search Network advertises on all properties that are directly
owned by Bing and Yahoo!.
• The Bing Content Network includes Bing and Yahoo! owned and operated
sites, as well as partner sites that allow the placement of advertisements
on their sites.
• The Yahoo! Bing network provides the option of uploading existing Google
Ads onto their advertising platforms, offering an easy and seamless switch.

17
reserved.
Bing Ads
• Bing Ads platform uses the maximum amount an advertiser is willing to

pay per click on their ad and the advertisement’s click-through-rate to
determine the position in which the advertisement is shown:
• The relevance of an advertisement plays an important role in determining
the placement of the advertisement.
• The monthly spend, that is, the amount of funds expended during a specific
period, also determines the position of an advertisement.
• Bing Ads allows advertisers to target their ads to a given set of

demographics :
• Bing Ads increases its bids whenever the ad is seen by a user of a certain
demographic.

18
reserved.
Bing Ads
• Bing Ads provides a desktop tool to manage campaigns offline, called as

Bing Ads Editor:
• Using this editor, the marketer can make changes to offline campaigns and
later sync it online
• Bing Ads also provides application programming interface (API) that can
be used to manage advertising campaigns.
• (*API is the acronym for Application Programming Interface, which is a software
intermediary that allows two applications to talk to each other).

19
reserved.
Bidding Process in Search Engine Advertising
• The advertising platform provides the advertiser information on the bid

price, that is, the price that the advertiser may be expected to pay for each
click that occurs on the advertisement by potential consumers (i.e., the
CPC).
• The advertiser has to indicate a bid price for every keyword that the
advertiser is interested in.
• The actual price that the advertiser pays may be a bit lower than the actual
bid price, but will never exceed the indicated bid price.
• The actual price that a seller ends up paying is dependent on the bid price
of the next highest bidder

20
reserved.
Bidding Process in Search Engine Advertising
• The auction for keywords generally follows a version of the Vickery

auction process, known as the generalized second-price Auction :
• Using this The highest bidder gets the fist slot and pays the second highest
price, the second highest bidder gets the second slot and pays the third
highest price, and so on
• The auction engine of the search engine decides on the AdRank that
should be allotted to specific advertisers, based on their CPC and QS:
• The QS associated with an advertisement may change over a period of
time, depending on what that CTR on the advertisement is and also what
the usage metrics are on that advertisement.

21
reserved.
Search Advertising For Mobile
Devices
Search Advertising For Mobile Devices
• Set Goals:
• Making clear goal setting and documentation mission is critical.
• Define Target Audience:

• Precise targeting helps home-in on high-intent searchers in the target
market.
• Determine AdWords Mobile PPC Keywords:

• The keywords one chooses, tells the ad platforms which user searches your
ads should appear for and tell users what the product or service is all about
• Optimize AdWords Ads and Landing Pages for Mobile:

• Using action-oriented words helps users to make a decision quickly. Other
strategies like day-parting and focused targeting will also help. Key metrics
should be defied and constantly tracked.

23
reserved.
Planning and Executing a Search
Advertising Campaign
Decide on the Goal of the Advertisement and Choose the
Target Audience
• Search advertising can be used to address a variety of marketing goals.

Usually, such objectives may include generating leads, identifying
prospects, customer acquisition, and sales:
• The achieving of such objectives may be tracked in terms of the actual
conversions that are obtained from these advertisements.
• Some of the other goals of search advertising could be to generate

awareness, build brand, and educate prospects:
• Each of these goals may be tracked through targeted impressions, qualified
visits to the website, and the depth of involvement.
• The AdWords platform , through the use of the Keyword Planner tool allows
the advertiser to choose the specific area in which the advertisement may
be shown.

25
reserved.
Choose Keywords
• The AdWords platform provides the indicative volume of searches that

have occurred for the keyword over the past one year and makes
suggestions for additional keywords that the advertiser can use for
creating different ads:
• For each of these additional keywords suggested, the Keyword Planner
also provides the average monthly searches and the suggested bid for
that particular keyword.
• The platform can also be used to set up options such as broad match or
exact match on the keywords that are chosen.
• The platform offers the possibility of handling misspellings through a

feature that allows close variant keyword matching.
• Negative keywords should be included when setting up the campaign.

26
reserved.
Choose Keywords
Broad Match, Phrase

Match and Exact Match

27
reserved.
Create Content/text
• Test ad content: Google Analytics Content Experiments allow the user to

develop several versions of a page and show different versions to different
users:
• The efficacy of each version of the advertisement is tested and the one with
the most conversion/CTR is identified.
• The one that is not working well may be switched off and the ad copy may
be changed again.
• Test ad position: The top position on the search engines provides high
visibility and may serve the purpose of branding for the website. but may
not always guarantee the highest conversion or CTR :
• In order to fid the optimal position for an advertisement, the advertiser may
experiment by raising or lowering the bid price on specific keywords.

28
reserved.
Set a Budget
• The Google AdWords and Bing Ads platforms can be used to set a daily
budget:
• If the budget gets exhausted, no more ads will be served that day. Such a
budget may be spread evenly over each day.
• if there is leftover from a specific day’s budget, it may be allocated to the
next day.
• The advertising budget may be allocated evenly throughout the day or
may be allocated to only specific times of the day, depending on the
volume of CTR/conversions that the advertiser observes

29
reserved.
Measure, Track and Adjust
• Close tracking of user activity may be undertaken by integrating the

advertising platform with the analytics platform.
• The performance on every keyword needs to be monitored. The ROI

obtained from the keywords should be calculated on a regular basis, and
non-performing or loss-making keywords should be reconsidered and
eliminated, if so adjudged.
• .

30
reserved.
THANKYOU

Search Advertising

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Search Advertising

Uploaded by

Copyright:

Available Formats

Search Advertising

Online Advertising Payment Models

• PPC or CPC: It is an Internet advertising model where advertisers pay the

© Oxford University Press 2017. All rights

• PPL/CPL: PPL/CPL is the amount/cost of the advertiser for acquiring a

© Oxford University Press 2017. All rights