Definition[]
In search advertising, an advertiser bids, via an ongoing auction process, to have his or her ad displayed when a consumer types a query into a search engine using a given keyword. Advertisers generally pay only if a consumer clicks on their ad.
Overview[]
The search market is dominated by Google and Yahoo! (now in a partnership with Microsoft, which has the Bing search engine).
Search advertising, which did not exist a decade ago, now has about 4% of the overall ad market and accounted for 47% of the digital ad market in the second quarter of 2009.[1]
The advantage of search advertising is that it allows advertisers to target individual consumers who are actively looking for a certain product or service. Using data generated by searches, advertisers can further refine ad campaigns to deliver additional, relevant ads to individuals based on their previous searches. Google had 64% of the search market in August 2009,[2] but faces new challenges after a July 2009 announcement by Microsoft and Yahoo! that they have formed a partnership on Internet search, under which Yahoo! will use Microsoft’s Bing search engine.[3]
As search advertising has become more prominent, it has spawned a cottage industry of analysts and media buyers who help businesses navigate the online auction system.[4] One strategy, search engine optimization, describes the practice of companies configuring their websites to have the attributes search engines are programmed to seek, giving them a better chance of appearing in an organic list of search results. To accomplish this, consulting firms try to figure out the algorithms large search firms use in their auctions.
References[]
- ↑ PricewaterHouse Coopers and Interactive Advertising Bureau, IAB Advertising Revenue Report, 2009 Second Quarter and First Six Months Results 2 (Oct. 2009).[1]
- ↑ comScore, “comScore releases August 2009 U.S. Search Engine Ratings." (Sept. 22, 2009).[2]
- ↑ Associated Press, “Microsoft, Yahoo Announce Search Deal” (July 29, 2009).[3]
- ↑ Steven Levy, “Secret of Googlenomics: Data-Filled Recipe Brews Profitability,” Wired, May 22, 2009.[4]