Search engine advertising

moonlightmidgeInternet and Web Development

Nov 18, 2013 (3 years and 10 months ago)

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Search engine advertising

MBA 563

After today’s class you will be able to:


Be able to explain methods of pay
-
per
-
click and
pay
-
per
-
action contextual advertising used in
search engines



Understand the benefits of geo
-
targeting



Understand search advertising ROI



Set up a Google AdWords campaign



Search engine marketing recap


distinguishing the two
elements


Search engine optimization


managing
organic search engine placement by
optimizing html pages and devising an
inbound link strategy



Search engine advertising and paid placement


Paying the search engines to get the results you
want

Paid listings

Organic
listings

Paid search versus SEO

Paid search


Results can be seen immediately
through increased traffic.



But : no spending = no results



Greater control over which keywords
are most associated with their
company, brands, products or
services.



Additional metrics are available,
which means more detailed Web
analytics that yield sophisticated
knowledge from the data.


SEO


Results are gradual


can take months


But the results can persist


maintaining position over time


Searchers find it more acceptable
than advertising


Can be complex and may require
external expertise


One process


many results (tends to
bring results across many search
engines, not just one)



http://www.iab.net/insights_research/947883/1675/708987

DO BOTH!

Search engine advertising


Search engines allow marketers to buy specific key word positions
-

ie
. buy their way to the top


Less consumer resistance that other forms of advertising (but
remember that CTR still quite low)



Print directory versus search advertising for SME?


Effectiveness can be directly measured


Speed of execution and “tweaking” of advertising copy


Speed of consumer response


Usually more cost
-
effective



Continuing strong growth in terms of advertising dollars spent
(IAB
Internet Advertising Revenue Report June 2013)



Search spending as a proportion of other advertising spend

-

47%
of online ad spend (IAB October 2012)

Search advertising choices


Market share


search engines
(May 2013 from
Comscore
)


Pricing models


with search pricing is almost
always based on a performance model


The cost of a campaign depends largely on the
keywords, and the competition for those keywords


it
is an auction (modified for relevancy in practice)


Pay Per Click


classic search engine pricing model
(PPC)


Pay Per Action


(PPA) Google experimented with
this in 2007/8

Search engine advertising


Web site design or coding has NO impact on position


Position is purchased as part of an advertising campaign
-

guarantees instant visibility


The website owner has control over:


Position in search results (BUT not always complete control


depends on AdRank in Google)


Keyword choice


Ad listing copy


Landing page


Geo
-
targeting

Buying keywords: search engine advertising


classic Pay Per Click


Keyword bid advertising

(usually) works
on a cost per click (CPC) / pay per click
(PPC) basis


Advertisers pay only when consumers click
on their link.


Sponsored links in search results


In simple terms, the company bidding higher on
the keyword is ranked higher in keyword search
results (in practice, the bid process is more
complex).



Google Adwords

in action


Effective form of advertising because your target
market qualifies itself



How is the ranking decided in practice?

Google (and more recently Yahoo) uses a combination of the bid
price or cost per click (CPC) and the ad relevancy or click
-
through
rate (CTR)


CPC x CTR = Google
AdRank


Advertiser sets the maximum CPC per day


If an ad with a lower bid per click gets clicked more often, it will rank
higher.


Result
-

CPC can decrease as an ad becomes more popular, even
though a competitor may be prepared to bid more on the same
keyword: more clicks = more money for Google.


Ranking can be improved by:



Increasing the set daily CPC


Trying to improve relevancy (and therefore CTR)


How? … Tweak the ad text


AdWords

Video:
Understanding Ad Rank
and
Quality Score


Keywords / key phrases


Just as in SEO it is all about what people are
actually typing into search engines


Create a list of keywords / phrases just as you
do for SEO


The big difference is that for search advertising
you can target as many as your budget will allow


Research the advertising that your keywords
actually trigger


Get sophisticated
(think long
-
tail)

Long
-
tail keywords (based on
power law concept)


Distinguish “long
-
tail” keywords from “head”
keywords


running shoes
= “head term”


compare grip new balance and nike trail running
= “long
-
tail term”


These search terms have good ROI because
they are less competitive and give higher user
satisfaction (lower bounce rates?)


Example of a long
-
tail keyword generator

Setting goals for an
Adwords

campaign


Before you begin to create an
Adwords

group
you need to set goals and metrics
(performance indicators so you know you
have succeeded)


Adwords

Video:
Define Success, then Achieve
it

The elements of a text
-
based search
engine advertisement

Title (25 characters
max)

Click to go to landing
page

Display URL (35
characters max)

Two lines of text (35
words max)

Include a call to action

Think about your ads….


Better ad text, better performance



some tips
on writing better
Adwords

advertisements



Each ad campaign is made up of one or more
“groups”. An
Adwords

“group” is made up of
one or more ads, keywords, bid placements,
and targeting that relate to one campaign
“theme”

Keyword targeted advertisements

also served to partner content sites


The keyword
-
targeted advertisements appear not
just in the search engine results pages, but on the
“content network”


Major players in PPC search engine advertising


Google
works with an affiliate network


Google search engine


Google maps


Content partner network


AdSense publisher network



Microsoft / Facebook alliance


Advertising across the Google network
with Adwords


Google Adwords Advertising types



We will look at these in a minute when we
consider Adwords from the web publisher
point of view


Geo
-
targeting


Very cost
-
effective and highly targeting method
of using search engine marketing


Especially useful for:


Small businesses whose target markets are in
particular local areas


Bricks and mortar businesses


Allows you to target your advertisement to


Particular geographic locations


Particular languages


Geo
-
targeting
-

Bob Nicholson

(4 minutes)



Advertising metrics: ROI and CPA


ROI = Return on investment


CPC = Cost per click


CPM = Cost per thousand (impression)


CPA = Cost per (customer) acquisition




Google Analytics and
AdWords

are very
strongly tied together

Managing multiple campaigns across
different ad networks


Larger companies will likely have campaigns
with Google, Yahoo! Search Marketing and
MSN, Bing,
Facebook

etc



Need software tools to help manage multiple
ad networks and bids

Advertising for web publishers


Google
AdWords



for marketers



Google AdSense


for publishers


Google’s
content network
-

% of CPC paid


Ads are matched to page content, not search
terms




Different ad formats available, including video ads


Samples


How AdSense works

(video)


Click fraud


PPC lends itself to click fraud because of its structure


Advertiser pays the advertising network, which in turn
pays the publisher



Click fraud = clicking on a paid advertisement for a fraudulent
or non
-
legitimate purpose


By a human, an automated script or a computer program


an example



The advertiser pays, the search engine company can be said
to benefit (apart from paying out a % to the publisher)



Why click fraud?


Two main types of click fraud:


Search engine click fraud: artificially raising a competitor’s marketing
costs or exhausting their budget to remove them from their position in
the listings (usually on very high cost or competitive key terms)



Publisher click fraud: artificially raising a publisher’s income from
AdSense



Estimated 10% to 15% of ad clicks are fake, representing roughly $1
billion in annual billings (
Business Week, 2006).



Search firms have put tools in place to detect and prevent click fraud
(but have still been sued by advertisers)



Where are we now with click fraud?
Stats for 2012


Mobile clicks in error are now an increasing problem

Advertising using other firms brand
names as keywords


It used to be that if you typed in Harvard
Business Review you got
Adwords

advertising
for McKinsey Quarterly


Type in Molson beer and you get an ad for
Budweiser


Legal in the US and Canada?


Ethical?



Google Trademark Complaint process



Hands on practice



Explore Google
AdWords
, research
a PPC
keyword campaign, and get some practice in
designing text advertisements



AdWords

Home



Google
Adwords
: How to create a campaign,
set up ad groups, and types of advertisements