The most important use of Internet is the search for information. Almost billion searches are done every month. Internet is such a powerful database that the range of searches is about everything known to mankind, starting from ordinary information like consumable goods to advanced information like nanotechnology. The search for information could lead to decision-making for planning a trip to an exotic location, for preparing for an MBA course.
What better place could there be for online advertisers, who want to advertise their products and services, than the one where online users come to search for their information needs Certainly an advertiser who would position the products/services in such a space, claiming about the quality matching the needs of the user, would be able to attract the customer and then direct to the website and to make him/her to buy.
PPC search advertising is about interpreting the needs of an online user and accordingly position the advertisement. To explain further, when an online user wants certain information, he/she enters a search engine and types in a limited number of keywords that would best describe the need. An online advertiser, by anticipating the needs and also the possible combination of keywords, through a certain process with the search engine provider, enables the advertisement to appear in the desired position, whenever someone types in the keywords.
The process by which an advertiser places the advertisement in the desired position is by bidding for the keywords with the search agency. The highest bidder gets the first position in the search results page whenever someone types in these keywords, which the advertiser has bid for.
All of the search engines like Google, Yahoo, and MSN provide this service. Google, which has the most reach, started this. Besides Tier 2 search engines like FindWhat, Altavista provide the same service.
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A successful marketer plans his work by understanding the needs of a selected group, as his/her products/services would not satisfy the needs of all the people. In brick-and-mortar businesses, this would be the segmentation. The same principle applies in e-marketing too. Before selling, the marketer needs to know who the target group is.
Targeted PPC advertising works by selecting the target group and attracting the groups attention by well-crafted messages. By targeting the group and preparing the advertisement and the website, the advertiser pre-qualifies the customers and is ensured that the chances of users seeing the advertisement click through the advertisement would be high. So targeting is effective in converting searchers into viewers. The journey is far from over as, once search to view is complete, the website has to be persuasive about the products to make the viewer into a respondent and finally a customer.
The advantages of targeted advertising are the high conversion rates of the searches into viewers as against the untargeted ones, where everyone would see it without clicking through it. Further the advertisement pre-qualifies the customers thereby reducing the cost to acquisition of a customer.
A web host should host only those advertisements related to its contents, for instance a music related site can host advertising services for music related products like CD, etc and not about pet food unless the website assumes every music lover owns a pet. Similarly, in a search engine, an advertiser should bid for those keywords which are related to the products/services, for instance, a real estate in New York shouldnt compete for the keywords real estate+ Chicago unless he/she intends to sell in that area.
Just as a shooter aims at a target, an advertiser has to select the target. As every click drains the advertisement budget, it is wise to know that every click returns on the investment by targeting only those users whose chances of becoming a customer are high.
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