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An Investigation of Pay Per Click Search Engine Advertising : Modeling the PPC Paradigm to lower Cost per Action

An Investigation of Pay Per Click Search Engine Advertising : Modeling the PPC Paradigm to lower Cost per Action. Presented By: Neeraj Narang. By Alexandre Douzet Co-Founder & CEO, TheLadders.com. Apr-11-2013. Overview. Analyze PPC paradigm

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An Investigation of Pay Per Click Search Engine Advertising : Modeling the PPC Paradigm to lower Cost per Action

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  1. An Investigation of Pay Per Click Search Engine Advertising:Modeling the PPC Paradigm to lower Cost per Action Presented By: NeerajNarang By AlexandreDouzet Co-Founder & CEO, TheLadders.com

  2. Apr-11-2013 Overview • Analyze PPC paradigm • Analyzing differences in bidding and valuation between vendors like Google & Overture • Delivery methods like content or search listings • Analyze it from the advertiser’s perspective Investigating PPC Advertising 1

  3. Apr-11-2013 Where it fits in with the course? Lecture: Search Engine Advertising • Search Engine Marketing and Optimizationi.e Getting to the first position • Banner Advertising • Using PPC advertising for your businessCreating PPC campaignsAds on search and content networks • Tracking the campaigns Investigating PPC Advertising 2

  4. Apr-11-2013 The Terms The 'Auction'-The most apparent feature of the PPC advertising marketplace-Implementation differs across search enginesPrimary auctions:-Sealed Envelope or sealed bid-English auction Investigating PPC Advertising 3

  5. Apr-11-2013 It’s Not Rocket Science Other industries have the same business paradigm Investigating PPC Advertising 4

  6. Apr-11-2013 The History -Emerged in 1998, introduced by GoTo.com-In 2000, GoTo provided service to Inktomi, yahoo, AltaVista, alltheweb.com, etc...-2001, renamed to Overture: controlled nearly entire PPC market-Yahoo purchased Overture in 2003 Investigating PPC Advertising 5

  7. Apr-11-2013 Google Ad Model Advertising first appeared on Google.com in January 2000 — text ads were sold on a CPM(cost per impression) basis. (Yes, that’s right, there was no pay-per-click, no self-serve, no bidding)In 2002, Google switched to a model similar to Overture and offered paid results to Earthlink, AskJeeves, and America Online Investigating PPC Advertising 6

  8. Apr-11-2013 2005: Enter Content Networks By 2005, Google and Overture were the giants of search engine marketingBoth offered a second model, in the form of content networks i.e. allow websites to offer ads based on their content.In this model, the ads relate directly to the content being viewed. Investigating PPC Advertising 7

  9. Apr-11-2013 SEARCH Vs CONTENT NETWORKS Investigating PPC Advertising 8

  10. Apr-11-2013 Position and efficiency of content and search TheLadders.com conducted a test They used thousands of keywords They used different types of matching like exact, phrase, broad Each keyword was then given an average position Investigating PPC Advertising 9

  11. Apr-11-2013 Position and efficiency of content and search Observation  Search and content should be treated as separate things Investigating PPC Advertising 10

  12. Apr-11-2013 Auction Types Where do keywords get their prices from?A new auction is held every single time a search happens.-A Second Price, Multiple Round, Sealed Bid Auction-Google-A second Price, Multiple Round, English Auction-OvertureDifference between Keyword Auctions and Other Auctions? Investigating PPC Advertising 11

  13. Apr-11-2013 A Study of the Creative Ad Minor changes in creative can have major impactsBetter creative can increase performance of the same positionOptimize creative on a cost per action basis Can make your second position keyword act like it’s on the first position Investigating PPC Advertising 12

  14. Apr-11-2013 Pros  The paper gives exhaustive explanation of the different types of auctions Compared search and content delivery models very wellQuality of tests performed is high Cons  Does not really tell what delivery model is suitable for a particular business  Focuses more on advertising with Google Investigating PPC Advertising 13

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