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Is Google Trying to Kill Paid Search?

Posted In Technology Reviews - By Techtiplib on Thursday, November 7th, 2013 With No Comments »

Many people know that Google rose to fame and fortune based on the strength of their algorithms, those complex mathematical formulas which allowed them to produce better search results than the competition. Before Google, there were a lot of popular search engines, but the Internet was also a much smaller community, so getting reliable results was a relatively easy task. Today, the Internet is almost a planet onto itself, and Google has a commanding lead in all Internet searches. As a result, they have the ability to get people to pay to place an ad when search results are returned based on a certain keyword. Their program is called AdWords, and it is the main source of Google’s prodigious income. They have their own formula for evaluating the positioning of the ads. It has been fairly constant for years, but now, out of nowhere, they changed the rules of the game.

Is Google Trying to Kill Paid SearchIs Google Trying to Kill Paid SearchGoogle Adwords – What is it?

Google Adword is the primary source of income for this master search engine and also the prime advertising product. Adwords provides cost-per-click or pay-per-click advertising, site targeted marketing for media ads, banners and texts and CM or cost-per-mile advertising.

Getting Comfortable With Ad Rank

The formula for how Google evaluates its paid advertising program (AdWords) gets a little complicated and is usually the domain of professionals. The important thing is that there was a complex algorithm in place for the last several years, which is generally referred to as Ad Rank. The most important function of Ad Rank has been to evaluate exactly where a customer’s ad will be placed on each page, and how much they will pay each time a prospect clicks on the ad. Think of it as paying different amounts for being on page one of your local newspapers versus being buried on page four. Up until now, Page Rank was the mix of two factors: the most that each advertiser was willing to pay for a click on their advertisement (commonly referred to as CPC) and what Google calls Quality Score. This is a little more difficult to determine, but it basically reflects how relevant a customer’s site is, the quality of the landing page, and how informative it is.

Change Afoot

Google has always been very clear about how they determine Ad Ranks. But in the last few weeks, they have quietly introduced an additional component to the formula, which was barely announced. The latest change adds one more factor to the mix: add extensions. These are basically additional links within the ad itself, which lead to different areas of the customer’s website. Such simple links as “click here for more information” or “contact us here” are simple but effective examples. The more extensions, the greater the chance that a customer will click on one, which is good for the merchant but also means Google makes more money. In the end, everyone wins.

Pay Per Click over Searches

Gradually pay per click ads are taking upper hand over the results of Google search engine. This is not at all surprising since majority of Google’s revenue is generated from search engine advertising. This is beneficial for businesses that drive traffic from search ads.  

Get Professional Advice

If it all sounds quite complicated, it truly is. That is why you need to engage professionals well versed in AdWords, who follow all the best practices and can advise you on how to best mount a successful AdWords campaign, following all the latest Google guidelines. They will be able to make your campaign far more successful and get you the best return on your investment.

Author Bio:

Simon Hopes is an eminent guest blogger. He tries to keep a track of the changes taking place in Google. He asks his readers to consult the Adwords professionals whenever there is confusion about the changing trend of Google.

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