What is Ad Auction?
Ad auction is defined as a process of pricing online advertisements based on pay-per-click for organisations who wish to display their ads on search engines. If there are available slots for advertisement, the search engine providers hold an auction in which the advertisers bid on certain keywords against each other. The bidder with the highest bid wins the auction. The search engines decide:
- Which ad will appear in the top search ranks in the search engine result pages?
- Order of all the other ads.
- If an ad will not be displayed at all.
Such auctions are of 2 types:
1. First-Price Auction: In a First-Price Auction, the advertiser with the highest bid wins and pays the maximum amount set in the auction.
2. Second-Price Auction: In a Second-Price Auction the advertiser with the highest bid wins but he needs to pay more than the second-highest bidder rather than paying the highest bid amount.
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