Paid search-what is it?
Paid search is the process of paying for ads that are displayed in front of the users that use search engines to look up information on the Internet.
Let’s say that you use Google to search for “how to tie a tie”. Google will display on the page the results that it considers to be the most relevant and of the highest quality that are related to the topic or keyword of “how to tie a tie”.
These results are displayed one below each other in a column and to the right of the page. To the right of the results page and above the organic search results, you will often see a bunch of other results in a coloured box. They are clearly labelled. These other results are displayed because people bid real money to have their ads show up for the people who search for “how to tie a tie”.
The topic of paid search is more complex but this is the main idea behind it.
What are the most important benefits of paid search?
Speed to market. This is an often overlooked benefit. It might take months until you get from an idea to a real product. This is why it’s often better if you test your idea at a small scale to see if it works. Paid search is excellent from this point of view because you only need a few ads and a few pages where people can buy a demo product.
Test The market. If many visitors click on the order buttons, this means that you should definitely go for the product that you have in mind. This way you get test the market.
Build traffic and generate leads. It is the best and speediest method of generating traffic for your website and interest in your product provided your ads are enticing enough. You are able to generate leads and revenue for your products and services from the word go. PPC ads work to generate leads for you
Build Online Credibility and brand awareness. Banner ads are the most appropriate method to create brand awareness and interest in your brand. You lend credibility to you brand and it helps to create awareness of your services but also the consumer can avail the services when needed through rendered ads.
It is much easier to learn. Learning advertising is quite hard because it takes a lot of time to create ads and to write sales letters. A better idea is to simply use a strong paid search product like Google’s Adwords and create a bunch of ads in a market that you understand. As a result, you will be able to see how the markets that are comprised of the people who use the search engine react to different ads. Then think hard about the results you get and learn from your experience how to write better ads tweaking them along the way.
Targeted prospects. The people who use search engines target themselves by the search terms they use to search for information. For example, if a person searches for “how to get a date”, you can deduce a lot of things about that person. Most people who search for this term want a date and have trouble getting one for some reason. So, if you have a product that helps them get a date, you should definitely use the power of paid search to get these people directly to your website where they can order your product. They will get to your website by clicking on the paid search ads.
Consumers more likely to convert and buy. Consumers are more likely to buy as they have taken a decision and are searching for the products and services when the ads are served.
Real time. Everything happens in real time. In less than 15 minutes of creating an ad campaign, your ads will be displayed on the search engines.
It Works for Businesses All of Sizes. Your business doesn’t have to be a one of the Fortune 500. There are many people out there on the Internet who want to buy various things. Through paid search, you can put your ads in front of the people who want to buy what you have to offer.
You Can Start small. In paid search, be it banner ads or pay per click you can start with a very small budget and increase it as you go along, you do not require mammoth spends.
How does paid search work?
I’m going to show you how paid search works from two different perspectives. These are the most important and relevant perspectives for you to know. First, you have to understand paid search from the point of view of a search engine user. Second, you have to understand it from the perspective of the advertisers who buy paid search ads.
A user that searches the Internet on a search engine like Google and Bing is being presented each time with a page composed of different search results. The search results have to be about the search term that’s being used by the user. So, if you search for “learn a guitar”, the search engine will display a number of search results that are click-able. When you click on a result, you will be redirected to a web-page on which you will find information related to how to learn a guitar.
To use again the search engine, you can get back to the search engine’s home page and try again with another search term. The results that are being displayed in the centre in a column are called organic search results. They are ranked by the search engine based on their popularity and relevance. The results to the right and above the organic search results are paid by advertisers. When you click on any of them, the advertiser pays the search engine a fee. The price for a click ranges from about 20 pence to tens of pounds. The price of a click is depended on many factors such as competition and the no’s monthly searches on those searched terms.
The above paragraphs described how paid search works from the perspective of the user. Now, I’m going to show you how paid search works from the perspective of the advertiser. For millions of search terms that are used by people to search on search engines, there’s a number of advertisers who bid against each other to display their ads on the search engines. These ads are usually displayed to the right or above the organic search results.
The first paid ad from top to bottom is the most expensive when the search engine user clicks on it. This means that the advertiser who paid for it has to pay more when its ad is displayed on the first position than on any other position.
The costs of paying for search engine clicks can be lowered if the advertisers has a high quality score of the ad, if the ad is relevant and if the click through rate is large enough. A high quality landing page has to be relevant to the search term used by the search engine visitor and to the contents of the actual paid search ad. The ad has to be relevant to the search term. The click through rate is the mathematical result that comes from dividing the number of clicks to the number of times the ad is being shown or impressions. The higher your click through rate for an ad, the less you will have to pay for that ad when it gets clicked.
Why is it essential to do paid search?
Paid search is a tool that many online businesses know about. Let’s say that your product teaches people how to train dogs. When a customer searches for the term “how to train my dog” and if you are not displaying Google PPC ads, your competitors will. So you will miss those sales that can be easily caught simply by buying a few PPC ads.
You are basically leaving money on the table and this is the worst thing that can happen if you are ignoring the PPC way of making money. But if you own a business, you are in the business of making money. So, you should think really hard before making the decision of not taking advantage of the PPC opportunity.
Statistics on paid search.
In 2011, the number of clicks received by Google on mobile devices, smart-phones and tablets, increased by 132%. On top of this, the price for a mobile ad click is lower. So the perspective is optimistic especially when it comes to mobile paid search.
In the United States, about 81% of the paid search revenues go to Google and the paid search market is on an ascending trend. It grows about 7% per quarter in United States and it grows by an even higher percentage in Europe.
The entire global paid search market reached a high of $34 billion in 2011. This puts paid search on a bigger pedestal than radio advertising which reached only $29.5 billion and outdoor advertising which was at $23.6 billion
The future of paid search.
In 2006, advertisers paid $13.6 billion worldwide for paid search. In 2011, the sum spent on paid search reached $34.9. Paid search grows much faster than the TV ad spending which grew at a rate 5 times slower in the past 5 years. It is expected that by 2016, the global paid search spending will reach an all time high of $61.1 billion.