Google, Yahoo, and MSN’s Golden Nugget
February 10, 2011 § Leave a comment
Paid placement and paid inclusion advertising are very powerful advertising tools. As mentioned in my previous post, Search engines have unique algorithms that take many things into consideration including, price, promotional advertising copy, landing page quality, etc. This algorithm ensures that when someone searches for specific keywords the best match will appear higher within the search results. Different search engines weigh attributes differently but all weigh quality of the website, copy, and destination landing pages high. Most advertisers who have large paid placements campaigns will focus their time and efforts on the quality of their website, copy, and the landing pages since these attributes are weighted high therefore driving down the price and still maintaining a high rank. This sophisticated algorithm ensures that the produced results are the most relevant results possible. The less time a user has to spend searching for the product the more likely they are to buy.
Google, Yahoo, and MSN make majority of their money off of this model and without it would not be as profitable as they are today. In theory it is a win win for both the search engines and the advertisers. The advertisers win because they only have to pay when a consumer thinks their product is relevant to their search and the search engines win because they are not only able to monetize based on bidding wars, but they also have the ability to understand buying behavior and how to leverage advertising dollars in the most efficient way possible.