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Google Adwords - Efficiency of Search Advertising
August 22, 2005
Why is search advertising so efficient? I hope to provide some clues to this answer today.
Search advertising has a big advantage. This is the fact that the content is presented before the target when the target is in the process of searching for this information.
When this happens, the percentage of a positive response is high. If the content that is presented is of high quality, then the chances of conversion of a lead is very high indeed.
There is also the aspect of feedback. Based on the actions taken by the target, the advertiser can tune and fine tune his creative and method of presentation.
This can be used to get high quality creatives and content. The main criteria for feedback will be click through rates, conversion rates, browsing time, etc.
Google Adwords provides many tools to do this. One of them is the ability to simultaneously run multiple creatives for a particular search keyword. Google automatically gives more importance to the
creative that performs better.
For google the criteria of performing better is the CTR (click through rate). The advertiser can throw away the creative with lower performance and create a new version based on the one with higher performance. This method leads to highly effective creatives.
Another method of using the feedback is to do similar stuff with the landing page by serving up two landing pages and measuring the conversion rates. This can help optimize landing pages.
Posted by liveit at August 22, 2005 6:33 PM