Search advertising refers to sponsored links that appear
at the top, bottom, or alongside search engine results page. Due to the limited space for ads,
advertisers have to bid for keywords. Google Ads, Bing Ads, and Yahoo! Search Ads are some of the
popular search advertising platforms that offer flexibility to craft ad text, set budgets, target
customers based on demographics and location, and choose between a cost-per-click or cost-per-
acquisition payment model.
The main advantage of search advertising is the ability to reach customers who are
actively searching for a product or service, often with the intent to purchase. This makes it
highly effective compared to other forms of online advertising. Additionally, search advertising
provides accountability, as leads and sales resulting from search advertising can be tracked by
following user behaviour on the website. Search ads are also non-disruptive, as they appear
alongside search results.
However, the high effectiveness of search advertising has also driven up the
competition for keywords and phrases, resulting in high bidding costs. Another limitation is that
search advertising can only target users searching for specific keywords and phrases, making it a
form of inbound marketing. While it is effective in fulfilling existing demand, search
advertising may not be as effective in creating demand.
For further information, please refer to the chapter on
Search Advertising.
