Week 2 (MKTG 349 OL) - Google's AdWords

Google is probably the biggest search engine website of all time. One big part of their success is AdWords, which is why Google's stock is worth so much. AdWords is a tool used to create ads, using AdWords you can determine whether your ad was effective or not. The ads that Google posts are paid by some advertiser and usually appear when it is relevant to your search. Basically, you are selling something, you measure the amount of clicks your ad gets, and you sell what you want. The purpose of these ads is to get you to click through when your searching something on Google.

Cost Per Click advertising is you pay for your advertisement based on the amount of clicks you get on it. People try to track how many clicks they get very carefully and how much they spend on advertisements. Because Google might charge you $0.44 - $1.00 based on their estimation of 7-12 clicks a day which might cost you between $5-10. That is why advertiser have to manage how many clicks they get and how much they spend on their ads, so they don't spend too much on a small amount of clicks.

There is always a bidding game going on between companies, in which they develop websites where they try to convince people to buy their product and see how much they spend on it. Then they are able to determine how much many they can use to sell their products and also make a profit. There is also the guessing game, where companies can't really track how well their advertisements are doing. For example, billboards or a TV ad, they just help get as much exposure as they can for the company. Online advertising is a bit better because you can track it and it might be more effective.

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