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Paid Search Advertising

Why Your Competitors Use Paid Search Advertising & You Should Too

This article gives a run down of what paid search advertising is: a form of digital marketing where search engines such as Google allow advertisers to have their pages show up on their search engine results pages. The article begins by talking about pay per click advertising which is where a business will bid on ad placement as a sponsored link on the search engine’s results page. The pay per click ad will appear at the top of the search results when a user searches with relevant key words similar to that of the sponsored link. Then the business would pay the search engine a small fee every time their link was clicked on by users. This relates to the topic in class where we would be given problems where there are multiple ad slots and multiple advertisers, and each ad slot had a click through rate and the advertisers valued the slots differently. These problems translate to real world scenarios because for example, a more web based company would value a high click through rate ad slot higher than a non-web based company due to get more attention to their web page.

The next portion of the article describes some of the benefits of paid search advertising primarily for small businesses. First, paid search ads produce fast results. They instantly give a businesses page more traffic by prioritizing their link and putting it at the top of a search results page when keywords are used which helps more search engine users see their page. Paid search advertising also allows measurable results due to a business being able to track the amount of clicks and sales from the clicks. This is important for a business to be able to evaluate how worthwhile their paid search advertising has been. Utilizing paid search advertising also can help improve recognition for a business by having their name come up on search results frequently when search engine users are searching for specific words. This will help with credibility for ones business. All of these aspects of paid search advertising are why more businesses are doing it. In the article it’s stated that US advertisers spent around $13.12 billion this 2019 on paid search which is 22.5% higher compared to last year. It is predicted that it will continue to keep rising due to the many benefits.


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