Friday, May 1, 2009

What is ad words ?

Online advertising commands less than a twentieth of the total ad spending revenue worldwide. in the us, online advertisements generated revenue of $15.6 billion of $263 billion. According to the NY post. With online ad spending growing at a rate of 25 to 30 percent and advertisers shifting ad spending from other media to online advertising is set to grow at a tremendous pace. Ford motors. For example, dropped its budget for print media ads from 23.5 to 21 percent, and increased online ad spending from 3 to 3.5 percent for the year 2006-2007.


Enter google

net giants like google and yahoo. Whose brand name and brand recall is the highest, needless to say, get the lion's share of online ad spending? In 2006, google was expected to get nearly a quarter of the online advertising share in the US, while yahoo. Was expected to grab about 20.7 percent of the chunk.

So what makes advertising on google advantageous when yahoo is the most popular website. With 400 million monthly users? The simple answer is that google commands 50 percent of search hit the world over. With yahoo and msn sliding down to 23.4 and 9.2 per cent respectively for 2006.

Context based advertising on search engines allows companies of all sixes to reach their target audiences. a small company that wants to advertise in a newspaper would have to shell out thousands of rupees for a small ad, which may or may not be looked at by potential customers.

Whereas in context-based advertising. You only pay if the customer, making the money, shows interest spent more worthwhile. Ads are positioned on the sponsored links according to the cost per click set by the adveriser, and also by the number of times users clicked the ad. the position of an ad could go from second or third to first position for a particular keyword.

Let’s take an example to see why online advertising is advantageous. Suppose you have a computer accessories shop in mumbai and want to place an ad. for a size of 2 by 3 inches in the middle pages of a newspaper, it will cost you about Rs.4000 with a leading one, and most of the time, it will be ignored by the reader.similarly,a 10-second slot on a leading TV channel will cost the advertiser Rs.1,80,000.and a 10-second slot will not allow brand recall unless it is shown many times over!

TV also isn’t suitable if your businesses catering to only one city. if you advertise using google's adwords,you can set the budget you think is appropriate, and set the cost per click and also target a region. Since you own a computer accessories shop, keywords relating to your business would be "monitor',"keyboard","mouse", etc.when a net user types in one of these keywords, your ad is shown in the sponsored links column of the search results, and the position of your ad will be according to the cost per click you had set. if your cost per click is lower that of your competitors, the placement of your as will be lower.but,if the number of clicks to your ad is more, the placement of the ad will rise-irrespective of the cost per click!

All said and done, it is obvious that other media cannot be ignored. When a new product is introduced on media such an s TV or radio, it creates an interest in the consumer-which cannot be done online. The reach of TV, radio and newspaper is also far greater than online. at least in countries such as India. Products like beds, food, cars and so on on cannot be sold online. Online advertising can only be good for certain goods and services.


What is ad words ?

Ad words are a trademarked name for google's online keyword based advertisement system. Ad words also refer to the keywords taken by the advertiser for the campaign. Taking the above example, the keywords monitor, keyboard, and mouse are called the ad words. When a google user searches on google by typing in these keywords -which you as the advertiser have chosen the ad appears on the right-hand side of the results page, alongside the generic web search results on the left. The placement of the ad depends upon the cost per click and also according to the relevance of the keyword to your ad, as explained before. Ebay, for example, has purchased hundreds of fast moving consumer keywords such as mobile, phone, laptop, pod and so on. So that when a potential user types in these keywords, he sees ebay.in the sponsored links. Since ebay also has set a higher price for many of the keywords it has purchased, ebay ads are displayed first in the sponsored ads section.

Remember that even if your site is listed in the organic links section. There is no guarantee that it will be listed in the first few search results. The web link could be in one of the gazillions of pages of the search results.

Sponsored links have the name of the ad as the title followed with a very brief synopsis of the sponsored site. The advertiser sets the title and synopsis of the ad. This is followed with the address to the web site, which, again is set by the advertiser.


Building ad words
There are two ways to sign up for ad words, depending on the type of advertising campaign you are planning.

The starter edition is for advertisers who have a single product or service. This edition is targeted to those new to ad words, and in general to the solo segment. Starter edition offers an easy-to understand interface with a simplified sign-up process to advertise single product of business. an advertiser can choose one or many keywords relating to his ad. Basic reporting like the number of clicks that was registered for the ad, the number of ads that were displayed for that keywords and the cost incurred due to clicks to advertisers advertisement are shown on this editing. One can also target ads to a city, country, or even by language in this edition.


This edition also has templates that assist one in building the ad, by asking a few simple questions. step-by-step procedures allow the advertiser to get tips on what keywords should be selected.

You fix your monthly budget and pay google in your local currency. The more you spend for the keyword; the ad will be displayed more often with higher ad positioning when the keyword is typed into the search engine. This is a bidding process” ads of the highest quoted keywords are displayed more often. With higher ad positioning.

Ad words standard edition has all the features of starter edition with a lot more tools. Here, ads can be targeted to multiple regions at once. Whereas in the starter edition. it is only for one region or one language.

Ad words standard edition has all the features of starter edition with a lot more tools. Here, ads can be targeted to multiple regions at once, whereas in the starter edition. It is only for one region or one language.

When it comes to the pricing of keywords, you have more options than with that of starter edition. Here, you have options of setting the price for each keyword, giving you, the advertiser, more control of how the ad money is spent, and proper strategizing of the ad. For example, for the keywords we mentioned, you could select keyword to be at a higher price per clicking then the rest, thus having the ad displayed more often for keyboard.


The content that goes as the brief description for the ad can also be bid for in this edition, where the highest bidder for keywords can displays a certain set of words relating to the ad.

The placement of the ads-such as second position, also called position preference, can be done with the standard edition.

Ad words standard edition allows you to have multiple products with multiple ad campaigns; with each campaign having many keywords-and each one of these campaigns can run simultaneously.

For example, tata, ad versified company, has multiple products and each product has multiple ads for different regions. The configuration for each a scenario can be done ate the second page.



Extensive report of impressions

Number of times users clicked on your ads

Statistics of impressions and click rates

Billing of yours ads, and custom reports like the region where the most number of clicks were generated, and the time of the clicks most number of clicks were generated, and the time of the clicks graogucak representation of the traffic of certain keyword. it gives you the estimate as to when a particular keyword search was more, like the time of a month or a month of a year.


Keyword tips so as to make the ad pop up more often


An option to get the statistics of keywords, so that you can understand which keyword was used more often in the set of keywords that you chose-allowing you to strategies and plan keywords more effectively. Hints on relevant sites where ads can be placed through ad sense so as to increase traffic to your site.

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