Posted in Marketing and Strategy Terms, Total Reads: 1708
Definition: Service Advertising
Search advertising, also known as search engine advertising, is a method of placing online advertisements on web pages that shows results from search engine queries. Search advertising uses ads that shows up when the internet users types in specific keywords or phrases in search of different products or services. It is one of the most widely used methods of online marketing. Search advertising requires advertising through search engines, each having their own specific platform for the same. Advertising on Google requires AdWords, Yahoo requires using Yahoo! Advertising! And Microsoft used adCenter.
The major advantage of using search advertising is the ability to accurately monitor the statistics of a campaign. The various ways of measuring search advertising activities are-
• Cost per thousand viewers (CPM) is the most commonly used method for pricing banner ads.
• Click-through rates (CTR) measures the number of times an ad is clicked as a percentage of the web page on which the ad appears. Individual search engine ads have higher CTR of 10% compared to only 0.5% of banner ads.
• Cost per action (CPA) is a way of quantifying cost for completing a specified activity such as attracting a customer or making a sale.
• Cost per click (CPC) keeps a track on the cost incurred in interacting with a potential or an old client.
• Total minutes (TM) are used by Net Ratings to measure total time spent on a web page rather than the number of web pages viewed by a person.
Search advertising also has an advantage of putting a product in front of the customer both when they are actively searching for it and also when they are oblivious to the product. Search advertising is an easy and valuable solution in markets with extremely competitive organic search listings. Advertising on Google, Yahoo and MSN gives a total reach of 86.4% of all internet users making it one of the most extensible forms of advertising.