Paid Search Ads: How the Nature of Online Advertising Has Changed

Paid Search Ads: How the Nature of Online Advertising Has Changed

  • 29 June 2011

Tom Taulli, a Forbes writer who specializes in finance, wrote a compelling article concerning the significance of paid search advertising. He informs us that paid search has become the pinnacle marketing strategy in the realm of online advertising. Taulli also touches upon alternate strategies that providers use to increase the odds of people clicking on their ads; they will change the font, add eye-catching photos, place the ad in different locations, or come up with clever slogans to entice searchers.

Paid search ads, or sponsored search ads, are when an advertiser pays a company to research the click through rates (CTR) for their ads. Marketers collect the data, analyze it, and look for any patterns or trends that can be inferred. Perhaps the most noticeable pattern the figures show is in keyword searches.  Identifying which keywords result in the highest CTR allows advertisers to locate their ads in a way which makes them relevant to the users search. They can also buy ad links during times when it’s more likely that the keyword will be searched for. For example, last Mother’s day, numerous flower companies like Teleflora and Proflowers (among others) paid for ad links whenever searches like “Mother’s Day gifts” or “Mother’s Day flowers.” This led to an estimated 35% increase in daily traffic for both advertisers. Paid search analysis has been revolutionary for online advertisers, in that opportunistic ad placement can amplify the exposure of a business. Taulli declares that "Paid search is the No. 1 promotion tool a new online business should use.” At Chitika, we stay on top of the latest advertising trends. We’re constantly modifying our process and approaches in an attempt to increase value for our clients.