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What is search advertising? Features of search and display advertising

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Search advertising is a marketing tool that allows to show the Internet users ads that are relevant to his interests. Relevance refers to the correspondence of the result and expectations. For example: You entered in the search line a request to “Buy an iron”. And the system gives out a list of options with links to online stores immediately. The topmost of the snippets (snippet is the result of a search in the form of a small extract from the textual information of the site) will be indicated by a small marker “Advertising”. In different search engines, the marker looks different. For example, sometimes it can generally be abbreviated with 2 letters “Ad” (in English version of the browser). For example, there is a search advertising in the Google search engine at the time of this writing:

 

Basic terms and concepts

On the territory of Runet and Ukrnet (as the Russian-language and Ukrainian-language Internet is abbreviated) the most famous and popular are 2 search engines: Google and Yandex. Placement of search advertising is one of the main sources of their income. Specifically, to manage ads and interact with advertisers, two systems were created that are part of global corporations: Google Adwords and Yandex Direct. Basic working principles are common for both systems. We will take a closer look at Adwords and Direct in future articles.

So, in order to get better acquainted with the work and effectiveness of search advertising in general, it is necessary to remember several definitions:

  1. Advertisement (abbreviated Ad) is the text that is created by the advertiser. The advertising system shows the Ad to the user. Typically, the text contains a link to the advertiser’s resource, but there is an exception: a version of Call-only advertising, which instead of the link contains only the phone number of the company.
  2. CTR (Click Through Rate) is an indicator of the effectiveness of an advertisement. It is very easy to recognize it: You need to divide the number of impressions by the number of clicks (referrals) by the link in the advertisement. The more users click on the ad, the higher its CTR. But not always a high CTR is good. The announcement can be intriguing (for example, “Come to see the candid photos of the Madonna”), users will often click on it, but clicks will not bring any result.
  3. Conversion is a specific action on a site that is desired by the advertiser. You can make it by the user after switching to the advertised resource. Conversion is considered to be a purchase, filling in an application, a chat message, a phone call, etc.
  4. Cost Per Click (CPC) is the amount that an advertising system withdraws from an advertiser’s account, when the user clicks on his/her

 

Auction of the advertising displaying system

We know that search advertising (SA) can be displayed to the user as a result of search results. This SA is called the search engine. The reason for displaying an advertisement is the so-called “keywords”. If the user’s request is the same as the passphrase, the advertisement (Ad) is included in the delivery result. If not, it is ignored. The list of desired keywords is set by the advertiser in Your account settings.

Auction of the context advertising system

To determine the Ad, that is worthy of the honor  of the show, Google Adwords and Yandex Direct use the auction system. A brief principle of the auction can be formulated as follows: the more You are willing to pay for a click, the more likely Your ad will get to a high position. But it is not so simple. In addition to CPC, impressions also check the ad quality, CTR, landing page quality, and relevance of the request. All these characteristics are taken into account by the system during distribution of the advertising issue, or, in other words, depending on the results of the analysis, decides: which advertisement from which advertiser to show on the 1st, 2nd, 3rd place etc.

 

Types of search advertising

Advertising can be search or display. All of the abovementioned examples are mainly related to the search advertising. What is the media SA? Such ads are banners with text and pictures, sometimes also with animation, which are displayed on the partner sites of the search engine. Display advertising is a source of earnings for many sites. The resources that host ad units are part of the network of search engine partners. Yandex has the name of the YAN system (Yandex Advertising Network), and Google has the CMN (ContextMedia Network). Display ads can be shown to users based on their features. For example, You can select individual audiences according to the following items:

  • by sex;
  • according to the age;
  • by region;
  • by interests (readers of news, sports fans, etc.);
  • according to the search history.

The list does not end here. You can also choose. You can also select specific sites for the domain of the site, or on the topic, and place Your advertising only there. An example of a display SA on a popular site:

Convenient system of payment for clicks, the expanded functionality of search systems and possibility of the full control over efficiency and expenses do search advertising by the convenient tool for business. Creation of a site, its promotion and SA is a guarantee of business success on the Internet. We hope that after reading this article You have found an answer to the question “What is search advertising” and learned the basic concepts associated with this term. In the following publications, You can learn more about Google Adwords and Yandex Direct systems.

 

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