Question

In: Economics

Explain how advertisers participate in PPC search and what determines a page’s ad rank.

Explain how advertisers participate in PPC search and what determines a page’s ad rank.

Solutions

Expert Solution

PPC stands for Pay Per Click . The mode of advertising that is more prevalent via internet, where the the companies pay for the ads whenever they are clicked. Internet marketing is a new global trend and opened windows for advertisers using Social Networking Sites, Youtube Channels, Google Ad words, Search engine advertising.

The Advertisers focus on the below mentioned aspects while creating Online ad-

  1. Proper research is done for the effective keywords being used for Products and services.
  2. Opting for Right Keywords.
  3. Relevance of the keywords showcasing Impact-full meaning with shorter versions of sentence.
  4. Arrange the keywords in proper manner to create and ad.

The Advertisers have to bid for the placement of ad in a search engines sponsored link, so whenever a person finds the required keyword related to his own purpose, the ads will be shown at the top of the search engines.

Whenever a person clicks the ad guided to the website of the advertiser, a small fees has to be paid to the Search engine by the advertiser.

How Advertisers participate in PPC search -

Google Ad words is the most popular PPC advertising model in the world. Most of the companies prefer to advertise through Google ad words as its effective and efficient mode to generate Queries and Publicity. The platform enables the advertisers to create ads that can appear on the top of the search engine and other Google properties.

The Google Ad words operates according to The PPC model, the advertisers have to bid for the Keywords and have to pay for the Clicks being done on their advertisements. The Google searches out form the pool of Ads Advertisers and selectively choose for the valuable ad space into the search engine. The selection is purely based on the Quality of keywords used and the relevance of the keywords, and not the least the size of the content.

Now an advertiser gets preference on the basis of two factors one is the CPC Bid (the highest amount the advertiser is willing to pay for the ad) and The Quality Score (a value that is related to click-through rate, relevance and Page Quality).

The platform of Google ad words allows the advertisers to reach their potential customers paying the cost affordable to the Business. It is another form of auction being done via internet sources.

There are other modes also available that offer PPC platform. The Youtube Paid channels offers advertisers to get promotional activity done while their videos being played.

Yahoo and Bing Search marketing are another platforms for keywords based advertising where business have to pay out the publishers an amount fixed per click.Yahoo is one of the most genuine platform for ads and provides great outputs that are beneficial for the companies.

Various bidding options that can be explored by the businesses-

  1. Mainline Bidding - The ad will be showed on the top of the search engine.
  2. First Page Bid- The ad will be displayed on the first page.
  3. Best Position Bid - Fetches the ad best position.
  4. Ad Group Bid- In an ad group it applies to all the keywords being used.
  5. Custom Bid - Selective Keywords.

Benefits of PPC model of Advertising -

  1. PPC contributes to achieve business goals. High level of brand exposure can be achieved using this platform.The high level of content marketing results into premium Queries of prospect customers.
  2. PPC platform gives a business quick entry into the most explored advertising tool.
  3. PPC model also ensures flexibility to the business according to their budget constraints.
  4. Content marketing is the base of PPC model for the same reason that original and unique content drives visitors more quickly and improves Return on Investment (ROI) done by the businesses.
  5. Business gets quick global recognition.

The Factors determining a Page's ad rank -

The position of ad depends on the keywords included in the ad, determined by the bid that the company using those keywords Multiplied by the Quality score. The higher is the quality score the higher will the rank of ad done by the business.

Higher ad ranks determine greater exposure of the products and services offered by the company results into higher Click Through Rate.


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