Recently, I have read a book written on Marketing and Advertising Using Google. At the beginning of the book, it discusses about the history and trend of online advertising. When I start reading the book, I remember the days when I first started my online statistic portal which was full of Banner Ads. But that business was not last as the dot-com crash killed our dreams and we started to think about new online advertising business models.
In 2000, Google developed a new advertising model called Google Ad-words. It is a keyword-targeted program which shows Ads on Google search engine that are related to users' search keywords. What leads Google to launch Ad-words? It based on the result of Internet development and changing of consumer behavior. Everyday, we use Google or a search engine to search information related to our needs. So, online advertising model like Ad-words emerges.
In 2000, Google developed a new advertising model called Google Ad-words. It is a keyword-targeted program which shows Ads on Google search engine that are related to users' search keywords. What leads Google to launch Ad-words? It based on the result of Internet development and changing of consumer behavior. Everyday, we use Google or a search engine to search information related to our needs. So, online advertising model like Ad-words emerges.
According to the survey, it was found that search has been the primary driver of growth in online advertising and the marketing budget which goes to Internet is more than 20% compared with 15% to news paper and magazine and 12% to television. Moreover, according to Google, AdWords’ content network which includes AOL, EarthLink, HowStuffWorks, & Blogger, reaches more than 64% of Internet users over 100 countries.
Google AdWords provides mainly on cost-per-click (CPC) but it also supports cost-per-thousand impressions (CPM). One more interesting tool related to Google marketing and advertising is Adsense. It is a way of earning money for website owners by displaying relevant, unobtrusive Google AdWords. The program helps the website publishers a way to monetize and enhance page content. It is also a value-added to the site as it put together the site visitors and relevant products or services.
Google made a success story in online advertising and eveyone wants to take after Google. But, will Google advertising model continue to be the first position? Yesterday, I read the news about MyAds from MySpace. New model in online advertising may be coming soon.
http://www.mediapost.com/publications/?fa=Articles.showArticleHomePage&art_aid=92750
http://www.mediapost.com/publications/?fa=Articles.showArticleHomePage&art_aid=92750
We have to wait and see.
Is the future of Online Advertising will be on Search Engine or Social Networking?
Is the future of Online Advertising will be on Search Engine or Social Networking?
Ref:
3 comments:
Actually if I were to advertise my product I would not be able to put all my budget with one or another. The search engines are the first place where people visit in terms of gathering information. However, advertising on social network, for me, is far more targeting than the search engine. The user profile, age group, social activities, hobbies, preferences are very useful components in delivering my product value proposition to potential consumers. I believe that both technologies are crucial for advertising. Thus, each technology will find their way to monetizing their service.
It depends on the product/service we would be offering and to who we are offering? I would probably invest a little more on social networking than search engines.
First of all, I don't believe that anything in internet will stay there forever (not even the file, lol). Same here with google and Sns.
Google also have a hard work waiting for them. Back in my undergraduate studies, we all have a big joke of "Google, the best advertising engine, not a seach engine." Although this word are still in small groups of people, eventually it will spread widely through every place. By then, google will have to work very hard to make their brand image still nice-looking because other search engines are following up very closely.
Sns is just the same. There are so many sns websites created recently. Among the big giants like facebook, myspace and hi5 (including Mixi if we're looking on Japanese market), they are just copying each others' idea to get themselves on the same ground of competition. I am still wondering nowadays are there any real competitive advantage existing among these sns websites.
Lastly, I really agreed with Yacoob. It just depends on the product/service we are offering. Most consumer products may sell better in social networking, but I don't think Viagra will sell better than search engine, lol. (as far as I know though, maybe there are some sns that viagra suits well, hahaha)
Post a Comment