Question

One of the most popular types of online advertising involves buying an ad-link on search engines like Google, Yahoo, or Bing. Advertisers can narrowly target potential customers by buying an ad that will be placed next to the search results for a specific term. For instance, if you used Yahoo search engine and typed in “spaghetti,” you would get 13 million results, ranging from spaghetti recipes, to encyclopedia references, to a link for the “Church of the Flying Spaghetti Monster.” In the right column are “sponsored results”—ads for spaghetti cookbooks, pasta making equipment, and several distributors of spaghetti sauce. Each search engine’s advertising system is unique, but you can get a basic understanding of the process by investigating Google’s system called “AdWords.” Go to the AdWords website and then answer the following questions. Explain how the price of an ad on Google is calculated. When purchasing search term advertising, a critical decision is identifying as many possible key terms to describe your product as possible. Suppose you were an online organic food store and you wanted to advertise .your vegetarian spaghetti sauce on Google. What specific keywords would you want to include? (Hint: Use the “keyword tool.”) List the best prospects. Assume your daily advertising budget is $50. What would be the best combination of key terms and cost per click to reach your target audience

Answer 1

Answer :

Explain how the price of an ad on Google is calculated.

Price of an ad in Google is calculated on the basis of certain variables. The basic variables are the ad rank of the person below you (i.e. the advertiser below you) and your quality score. Your price = (ad rank of the advertiser below you/your quality score) + $0.01. This will give you your CPC or cost per click.

When purchasing search term advertising, a critical decision is identifying as many possible key terms to describe your product as possible. Suppose you were an online organic food store and you wanted to advertise your vegetarian spaghetti sauce on Google. What specific keywords would you want to include?

While deciding for keyword advertiser must keep few things in mind like what customer will like, use theme, be specific, group similar words, choose right number of keywords. As the website suggest keywords must be between the range of 5-20, so selecting top 5 will be good.

The best prospects are – vegetarian spaghetti sauce, organic spaghetti sauce, best spaghetti squash, healthy spaghetti sauce and zucchini sauce.

List the best prospects. Assume your daily advertising budget is $50. What would be the best combination of key terms and cost per click to reach your target audience?

The best combination of keywords would be organic spaghetti sauce, healthy spaghetti sauce, best spaghetti squash and vegetarian spaghetti sauce. Considering the daily advertising budget of $50 I will be paying $1 every time someone clicks on my link that appears on the side of the page. Going along with the $50 dollars, I will pay $0.50 every time someone types in a keyword from the keywords stated above.