How effective are the ads displayed in Google search results?

When you search for something on Google, you may see

listing ads with the word 'advertisement' at the top of the search results. Economist Scott Cunningham asked, ``Is it meaningful to guide with advertisements when the purpose is usually decided when searching?'' reporting.

How can we know if paid search advertising works?

Google's sales in 2012 were about 46 billion dollars (about 5 trillion yen), 95% of which is due to advertising. Mr. Cunningham explains the effect of such search advertisements by citing eBay , a major US auction and online shop, as an example.

For example, if you search for 'Amazon' in Google Search, you will see two types of search results: sponsored search ads and natural search results without ads. As of 2012, 'eBay' was similar, and typing 'eBay mittens' returned two types of search results for the same page: sponsored and ad-free. An auction is held to display the ad space displayed at the top, but in this case, in the first place, the search is for the purpose of 'buying mittens on eBay', so even if you do not see the ad, you will reach the online shop. is felt naturally.

In 2015, eBay's research team investigated the impact of branded keyword search advertising on revenue. As a result, if you stop search ads, the number of clicks from the ad space will naturally be zero, but on the other hand, the number of clicks from the search results ' organic search ' that are not ads will increase, and the number of accesses to the site will stop advertising. It turns out that there is no change from before. It was shown that search ads may not contribute to the increase in the number of accesses.

After communicating the above findings to eBay leadership, the research team conducted a large-scale regional field experiment in 30% of all markets. Additional experiments also showed that search ads had no effect on eBay.

However, this is an experiment conducted on the eBay platform assuming eBay customers, and the paper adds that the effectiveness of advertising depends on what kind of return companies are looking for in advertising. increase. In addition, a 2019 survey of Facebook ads showed that the display position of the ads has a significant impact on the effectiveness of the ads.

Based on the research on search advertising mentioned above, Mr. Cunningham said that purely comparing data after eliminating the bias that ``if there are certain conditions, this kind of result will be obtained,'' ``advertising spending is wasted. Or does it work?”, and emphasizes the importance of analytical research in the advertising industry.

in Web Service, Posted by log1e_dh