Advertising on Search Engines

Overview of Advertising on Search Engines
Google, Yahoo!, and Bing were rated the top search engines for 2009. As internet sales increase it is becoming more and more important to advertize on the web. If money grew on trees it would be easy to decide what type of advertising medium to use; all of them. In reality money does not grow on trees and advertisers need to find the most cost effective ways to advertise by still reaching the greatest number of prospects. Search Engine advertising has become one of the fastest growing options for advertising on the internet. There are three general types of Search Engine advertising, Paid Placement, Paid Inclusion, and Contextual Ads.

Paid Placement
Advertising can get very expensive, especially for business’s just starting out. Advertisers who want top position in search results usually chose Paid Placement. Paid per click or PPC is the most common form of Paid Placement. The key to Paid per Click or Cost per Click is building an effective Ad with strong key words that are specialized to your target market. Advertisers bid on common search words relevant to their target market. Than the advertisement will be displayed when the keyword is clicked, these advertisements are called sponsored ads. PPC is cost effective. For example if you bid $.15 per click on ‘widgets’ and that is the highest bid, you will show up in the first line. If 50 people click on your listing than the search engine will charge you $7.50. These types of ads will usually be positioned at the top of the page, the right hand side, or at the bottom.

Here is an example of a Paid Position as, located on the right side of the Yahoo! screen.
Here is an example of a Paid Position as, located on the right side of the Yahoo! screen.

When a person clicks on an Ad they are somewhat interested. Although Cost per click does not guarantee to increase sales it does increase the customer list for a business. “Each time an Ad receives a click there is a 50/50 chance the customer will review your website and choose to make a purchase, or at least add your website to their favorites.” ROI or Return of Reach can be hard to measure some engines provide tools to help you measure reach but they are never 100% accurate. Also, PPC does not scale if you get more traffic in return you pay more money. “Critics of charging on a cost-per-click basis also say it's not a true measure of success, especially for brand marketers who would likely think of cost per lead or cost per sale as more meaningful metrics.”(Mcilroy, Megan)

PPC has fast results and generates traffic immediately after opening an account. It is a great option to use in Campaigns, Direct Response Business, and with Niche Terms because you can generate traffic to your site for a fraction of the cost of any other form of paid advertising.

Paid Inclusion
Allows your website to get first page rankings on search engines for particular keywords. It is also known as PFI Pay for Inclusion or PPI Pay per Inclusion. Site owners see this as a way to get indexed quickly they do not have to wait for search engines to find their sites through listings in directories. Search engines see it as a way to increase revenue by charging the site owners for the service.

Businesses choose to use Paid Inclusion because the grunt work is eliminated for them. They avoid all the hours of keyword searching, analysis, and product development hassle. Being within a paid inclusion feed ensures that within 48 hours every single submitted URL will be included in the search index. Paid Inclusion increases your opportunity for first page ranking with the main editorial portion of search results. Placement will lead to more traffic, and then as a result you will receive increased return on investment. If the scheduling is done correctly and your listing is placed in the most relevant searches, the highest benefit will be achieved. Also through Paid Inclusion you can perform split testing, which allows you to run two different ads based on the same keyword at one time to determine which is more beneficial. This allows you to narrow down for future advertising.

Paid Inclusion serves as an important medium for advertisers that want to increase online sales. The index listing of web pages by Paid Inclusion increases reach. Payment does not affect the order of search results. Companies pay for their Web Pages to be searched and included in an index with search engine results driven by relevancy to the topic searched. Paid Inclusion offers ways to tract Return on Investment through Conversion Tracking and Analysis, Search Engine Optimization, and Distribution

Here is an advertisement for Plan B on Yahoo!
Here is an advertisement for Plan B on Yahoo!

Contextual Advertising
Advertising on a website that is targeted to the specific individual who is visiting the website. The contextual ad system scans the text of a Web site for keywords and returns ads to the Web page. The ads can be returned in three ways through pop-ups, in text ads, or inline ads. In text ads return the best results. Search engines might display ads on their search results page based on the words the consumer has searched. Contextual Ads generate revenue for search engines. They give advertisers additional sources of traffic, for a very low price, and offer return on investments.
The internet is starting to take control of the world. Internet advertising is slowly eliminating other forms of media. Internet has many advantages it can reach a global audience, it is cost effective to use, it is interactive, it has great sales potential and it has a high reach and can run with as much frequency as wanted. Advertising on search engines is a cost effective and efficient tool. In 1999, $2 billion worldwide was spent on online advertising. By 2010, it is expected to reach $20billion (Kharbanda, 2006).

Crowell,Grant(2003,12/18) The “Secret System” of Search Engine Advertising. Search Engine Watch Newsletter, p.1

Kharbanda,Siddharth.(2006) Web Advertising Acceptability and Usefulness: Attaining Top Positions on Search Engines Is More Cost-Effective Than a Yellow Page or Directory Listing. Journal of Website Promotion 2.(1/2).,pp.185-193,9p.(10/20), Academic Search Complete, Communication & Mass Media Complete

Mcilroy, Megan. (2007, 8/27) Should cost per click be the way to get paid in search marketing? Advertising Age 78.(34) p.15. 10/18/2009, Communication & Mass Media Complete

Meida Week. (2009,8/31)Search and you Shall Find. 19(31) pp.S2-S11,p.7 10/20, Academic Search Complete, Communication & Mass Media Complete