Descriptive Study of Search - Based Online Advertising: A Theoretical Approach
- Author Pritam Chattopadhyay
- DOI
- Country : India
- Subject : Marketing
Keywords : Advertising, Online advertising, search based online advertising, search engine
Abstract
Search-based advertising has attracted havoc attention in the advertising industry as it offers unprecedented ability to target potential customers with quantifiable returns. This paper basically aims to provide the basic understanding and background of the industry, the key players those are playing major roles and the current opportunities and the future potential of this concept as well as the various economic perspectives underlining its glory, success and limitations. The paper concludes by reviewing various emerging pricing strategies and mechanisms and the future market trends and potential as well. The concept behind search-based online advertising is fairly simple: advertisers bid on keywords and when a user types in that keyword as a query in a search engine, their advertisements show up along with the organic search results. The amount the advertisers bid determines the position and ranking of their ads; the higher the bid, the better their position. Advertisers pay fees only when their ads are clicked upon (‘pay-per-click’ model). The interesting aspects of this market are the auction system determining ad position as well as in predicting users’ behaviour around search-engine and potential ad-clicks.
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