Google is the biggest search engine on the web. It controls over 40% of
Internet searches, and with that it controls pay per click advertising
(pay per click). PPC involves the advertiser paying a rate for every
click through (CTR) in which the advertisers set. As their budget
increases, their position increases, and as their position increases,
they get more traffic.
This has lead to over 140,000 companies choosing to advertise with them,
and they advertise in a number of ways. The first way is through is
through appearing on Google searches, the second is through appearing on
distributors websites, and the third is through appearing in
distributors search results. As advertisers appear in Google searches,
the question is sometimes asked. Why do they choose to advertise with
distributors as well?
One reason for this is scalability. Those who originally choose to
advertise in search results and who were getting a ROI (return on
investment) will decide at one point that they need to identify other
advertising opportunities. With thousands of websites which have the
capacity to display their adverts the advertisers can gain further
exposure very quickly.
Another reason why advertisers choose to advertise in Google
distributors websites is that it gains them further exposure. 60% of
internet users do not use Google, so the advertiser can appeal to a
wider audience through choosing to opt for distribution channels. Many
website users may be looking to buy a product such as a phone, yet
instead of coming across a website which sells such a product, they come
across an article. If the article is on a website which contains
Adsense then inevitably advertisers can use this channel to penetrate
their audience.
Another reason why advertisers choose adsense is because they trust
Google. The company is renowned for being an ethical company who are fun
to work whilst providing free services to millions worldwide.
Advertisers feel that money invested with Google is safe. Despite the
evolution of click-fraud and its inevitable disadvantages for
advertisers they appear to understand that this is an issue which Google
wants to stop and hopefully will eventually. Advertisers are happy that
Google admits a problem exits and provides refunds accordingly.
The trust in Google also stems from a trust in pricing. The pricing is
set by market forces and therefore advertisers never feel that
publishers or Google are overpricing the service. This means that as
long as advertisers are able to advertise they will continue to do so,
if not at the same rates.
Another strong advantage for advertisers is that they can appear where
publishers promote their service. An example of this can seen if you
consider a publisher who is discussing the benefits of new IT software.
If a software retailer appears on the website then inevitably they will
be the likely source from which the web surfer will purchase the
product. If the surfer is not interested then you could argue that they
would not click on the advert.
The service which Google provides has created an opportunity for
businesses of all sizes to advertise. Although the issue of click fraud
still plagues the service it is till widely regarded as the best. New
businesses attempt to promote themselves on the web, whilst established
brands alike choose to attract interest in their service using the same
technique.