MKTG 455 Paid Search

Paid Search

The relevant ad with a link to a comparable page that displayed on the search engine listings when the user of a search engine types in a specific phrase, paid through browser

Google’s revenue

250 Billion, makes money through advertising (90%), paid search is the largest component

Search engine reserves

Requests from different advertisers

How reserve?

have to bid to win ad space, bidder who gies highest bid wins

Second Price Auction

AKA Vickery Auction Method: winner pays bid for second highest price

Benefits of Second Price

companies can pay less, make it feel like a discount, it encourages bidder to be honest of what value actually is, bidders bid what click really worth to them, so no ‘gaming’ the auction

Google Ad Rank

Ad rank= Bid ($) x Quality Score

Quality Score

Factors in expected CTR for keyword, landing page experience, Ad relevance, Ad format

Steps in Paid Search campaign

1) Choose the goal

2) Segment the Audience

3) Choose Keywords

4) Design the ads

5) Set bid amount and budget

Goals for paid search include

increase awareness, visits, convert visits to leads, convert visits to sales

Goal Google Ads Encourage

Increase website traffic (since using PPC so eaiser for them to compare bids)

Campaign Type

Search (paid search)

Audience segment

Who can see the ads, not want to waste money on people who are not interested

Google Ads’ questions about audience

Who they are, habits/interests, what actively searching or planning for; With this info can feed ads precisely

Choosing Keywords

Which keywords want to use to target? Can tell products and service to google to generate keyword ideas; Doesn’t mean should always use, you know customer best

Brand Terms

brand related keywords like nike, nike shoes, nike tops, nike basketball

Generic Terms

Customer not have strong preference to specific brand yet; ex: running shoes, footwear, athletic apparel

Related Terms

Words that could also work for brand; for example nike: NBA, golf court, college football, b-day gifts for teen

Competitor Terms

Use to target customer with similar interest in other brands; for Nike: Addidas, Pumas, etc.

Long-tailed Keywords

Keywords with four or more words, Less competitive, high conversion rate, but results in fewer clicks

Design the Ad

Include URL, Title/headline, description, and some ad extensions (can enhance quality)

Types of Ad extensions

Site Links, Customer rating, product listings, and local info

Site Links

Customers go to other section of site interested in

Customer Rating on Ad

Can increase credibility, and give confidence in click

Product Listings

show specific product info (price, image, popular to help compare products)

Local Ad extensions

Phone number (click to call) and link to google map

When determining ad ranking

Google will consider ad format

Set the bid amount

Google will recommend CPC method and also suggest amount to bid (based what google thinks would win)

Value placed on click should be based on

Breakeven ROI calculation and where you consider the conversion rate a website (profit per conversion)

If lose auction and ad not shown

Do not pay anything, not waste money

Maximum you would like to pay

Is the breakeven point

CPC =

net profit/clicks = (net profit/customers)/ (clicks/customers) = (net profit/customers) * (Customers/clicks) = CPC