Hubbry Logo
search
logo

Search advertising

logo
Community Hub0 Subscribers
Write something...
Be the first to start a discussion here.
Be the first to start a discussion here.
See all
Search advertising

In Internet marketing, search advertising is a method of placing online advertisements on web pages that show results from search engine queries. Through the same search-engine advertising services, ads can also be placed on Web pages with other published content.

Search advertisements are targeted to match key search terms (called keywords) entered on search engines. This targeting ability has contributed to the attractiveness of search advertising for advertisers. Consumers will often use a search engine to identify and compare purchasing options immediately before making a purchasing decision. The opportunity to present consumers with advertisements tailored to their immediate buying interests encourages consumers to click on search ads instead of unpaid search results, which are often less relevant. For the online user, Sponsored Search Advertisement offers highly relevant search results which are based on the consumer’s own queries and, thus, they are considered less intrusive than banner advertisements or pop-ups advertising. In addition, Sponsored Search Advertisement reduces online user search costs and increases the accessibility to useful information within a limited time frame. Consequently, Sponsored Search Advertisement has become an important element of online users browsing and information searching experiences on the Web. Search advertising is an alternative to SEO and SEM.

Web advertising before 1998 consisted of banner advertisements generally priced by the number of impressions delivered (i.e., Cost-Per-milli (CPM) pricing). In 1997, Yahoo first delivered banner advertisements based on search queries at its website. GoTo.com (renamed Overture in 2001, and acquired by Yahoo! in 2003) created the first sponsored search auction, and Google’s first sponsored search auction followed in 2002.

Search advertising is sold and delivered on the basis of keywords. The user of a search engine enters keywords to make queries. A keyword may consist of more than one word. The user interested in the product or service searches using a specific keyword or search term which lets them interact with advertiser's website.

Search engines conduct running auctions to sell ads according to bids received for keywords and relative relevance of user keywords to ads in the inventory. The keyword “home mortgage refinancing" is more expensive than one that is in less demand, such as “used bicycle tires.” Profit potential of the keywords also plays into bids for ads that advertisers want displayed when the keywords are searched by the user. For example, "used book" may be a popular keyword but may have low profit potential and the advertiser bids will reflect that.

Search engines build indexes of Web pages using a Web crawler. When the publisher of a Web page arranges with a search engine firm to have ads served up on that page, the search engine applies their indexing technology to associate the content of that page with keywords. Those keywords are then fed into the same auctioning system that is used by advertisers to buy ads on both search engine results pages. Advertising based on keywords in the surrounding content or context is referred to as Contextual advertising. This is usually less profitable than search advertising which is based on user intent expressed through their keywords.[citation needed]

Advertisers can choose whether to buy ads on search result pages (search advertising), published content pages (contextual advertising), or both. Bids on the same keywords are usually higher in search advertising than in contextual advertising.[citation needed]

In 2013, the Tenth Circuit Court of Appeals held in Lens.com, Inc. v. 1-800 Contacts, Inc. that online contact lens seller Lens.com did not commit trademark infringement when it purchased search advertisements using competitor 1-800 Contacts' federally registered 1800 CONTACTS trademark as a keyword. In August 2016, the Federal Trade Commission filed an administrative complaint against 1-800 Contacts alleging, among other things, that its search advertising trademark enforcement practices have unreasonably restrained competition in violation of the FTC Act. 1-800 Contacts has denied all wrongdoing and is scheduled to appear before an FTC administrative law judge in April 2017.

See all
User Avatar
No comments yet.