How effective are the ads displayed in Google search results?
listing ad that says 'advertisement' at the top of the search results. 'When searching, it usually has a fixed purpose, but does it make sense to guide it with ads?' 'How can we analyze how valuable listing ads are?', Economist Scott Cunningham said. I am reporting.
When you search for something on Google, you may see a
How can we know if paid search advertising works?
In 2012, Google posted sales of about $ 46 billion, 95% of which came from advertising. Mr. Cunningham explains the effectiveness of such search advertising by taking eBay , a major American auction and online shop, as an example.
For example, if you search for 'Amazon' in Google search, you will see two types of search ads: sponsored search ads and natural search results without ads. As of 2012, the same was true for 'eBay,' where you could type 'eBay Mittens' to see two types of search results, sponsored and unadvertised, for the same page. I am doing an auction to display the ad space displayed at the top, but in this case I am searching for the purpose of 'buying mittens on eBay', so I can reach the online shop without seeing the ad Feels natural.
In 2015, eBay's research team investigated 'the impact of brand keyword search advertising on revenue.' As a result, if you stop the search advertisement, the number of clicks from the inventory will naturally be zero, but on the other hand, the number of clicks from the non-advertising search result ' organic search ' will increase, and the number of visits to the site will stop advertising. It turns out that it does not change from before. It has been shown that search ads may not contribute to the increase in traffic.
The research team communicated the above findings to eBay's top management and conducted large-scale regional field experiments in 30% of the total market. And additional experiments have shown that search advertising has no effect on eBay.
However, this is just an experiment conducted on the eBay platform assuming eBay customers, and the paper supplements that the presence or absence of advertising effectiveness depends on what kind of return the company wants from the advertisement. increase. In addition, a survey of Facebook ads in 2019 showed that the effectiveness of ads is greatly influenced by the position of the ads.
Based on the above-mentioned research on search advertising, Mr. Cunningham said that it is a waste of advertising expenses to make a pure comparison of data after eliminating the bias that 'this will be the result if certain conditions are met'. He argues that he can answer the question, 'Is it or does it work?' And emphasizes the importance of analytical research in the advertising industry.
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