How Ad Auctions Work?
In a search engine marketing model, the businesses that can identify the precise keywords are the real winners in the market over the ones who spend the highest budget. Anyway, if a product or a website does well, it automatically gets a higher rank in the search engine result pages organically without the need for search engine marketing. Thus, we can say that a campaign advertised through search engine marketing with a higher budget may not get the top ad space. Organisations with lower budgets may occupy the space if they tend to attract heavy traffic, ensure trust signals, display relevant content, and identify the most searched keywords. Every time a consumer searches for a relevant keyword, search engines such as Google, Bing, and Yahoo go through an auction to select which ad will appear in the top rank on the search engine result page. The auction includes various factors such as an ad quality rating as well as a pay-per-click network. A search engine can enter an auction by the following steps:
Step 1: Placing a Bid: The campaign needs to enter the highest amount of budget it is willing to contribute for the keyword.
Step 2: Search Engine’s Quality Ranking: Search engines check and rate the quality of the ad and the website based on the keywords identified, the website’s user interface, the relevance of the content and the useful information they provide. They need to match certain criteria and requirements set by the search engines.
Step 3: Contextual Variables: Contextual variables include the user’s graphical location, search history, time when the search was conducted, device, other ads searched by the person, and the websites clicked.
Step 4: Rank is Assigned: Finally, after going through the above 3 steps, a rank is assigned to the products or website to be displayed on the search engine result page after considering all the factors.
What is Search Engine Marketing and How it Works?
Search Engine Marketing is the method of promoting and advertising in which the organisation’s content is made to be found at a higher rank when searched for in a search engine. The concept is similar to search engine optimisation (SEO) except for the fact that search engine marketing is a paid advertisement. Search engine marketing helps businesses to target consumers towards their products and services. What the companies do is buy top-ranked search engine result pages to display their personalised ads through the help of an auction process. Some of the commonly used search engines are Google, Bing, and Yahoo.
Search Engine Marketing includes:
- Title of the content
- Summarised description of the overall content
- Attractive text that inspires the users to open the website
- URL hyperlinks
Table of Content
- How does Search Engine Marketing Work?
- Importance of Search Engine Marketing
- What is Ad Auction?
- How Ad Auctions Work?
- Creating a Search Engine Marketing Campaign Strategy
- Disadvantages of Search Engine Marketing
- Difference Between SEM and SEO