|
Abstract
Search engine marketing (SEM) and pay-per-click (PPC) marketing services-such as Google AdWords, Yahoo! Search, and Microsoft adCenter-have become extremely popular, growing to a $10 billion industry in just a few years. These services deliver predictable results, straightforward targeting capabilities, and clear metrics to demonstrate return on advertising spend (ROAS).
As a result, search ads have become an advertising mainstay-and for some businesses, even a standalone strategy. Many advertisers have avoided using other channels such as display advertising, because they can be too costly or difficult to execute and measure.
Recently, however, display advertising technology has begun to make dramatic advances, putting it within reach of all advertisers, regardless of advertising budget. Banner ads can now be as easy and cost-effective as search ads, with similar metrics to prove ROAS. Display ads also offer advantages that search cannot, including the ability to build brand awareness, scale with growth, and reach new customers when they aren't actively searching-which is about 95% of the time.
This white paper will explain the value of online display advertising, and how search and display advertising can be used together as a powerful, one-two punch. The paper will detail the advantages and disadvantages of search ads, the benefits of display advertising, and how the two can work together in harmony to drive sales more effectively than either channel by itself.
Search Ads: Effective, but Limited
Search advertising reaches customers at a pivotal point in the buying cycle. Your ad appears on a results page whenever a customer searches using target keywords that you select, and you only pay when someone clicks on your ad, not for the impression alone. Ideally, a customer finds your ad, clicks through to a landing page, and then buys your product or service.
Once you get your ad on a desirable results page, the playing field is relatively even. Search ads are limited to text, so advertisers don't have to compete with flashy graphics or other visual elements to draw a customer's eye. You just need to research, test, and frequently reevaluate your keywords and ad copy to make sure the ad is positioned well and placed in front of the greatest number of qualified customers.
Search ads perform well when properly managed, although lean budgets have led advertisers to scrutinize advertising initiatives more closely in order to maximize ROAS, causing them to question the effectiveness of search-only campaigns. These advertisers have discovered that search has four main areas of weakness:
1) The search ad market is increasingly competitive. More than one million companies use search ads, compared to less than 50,000 companies running display ads. This makes popular keywords very expensive. For example, Google includes no more than eight search ads on its first results page-so for a popular keyword like "shoe," the price to be included on that first page is prohibitive.
2) Search campaigns don't scale well. Search ads are inherently limited: they only appear on a given search engine site, and they rely on a customer typing in the specific keywords you've chosen. After you've chosen an array of relevant keywords and paid for prominent placement, further budget invested in search advertising produces diminishing returns.
3) Search ads offer limited branding and awareness benefits. The inability to use logos, images, and other visual elements makes differentiating your business much more difficult. In contrast, rich banner ads let you make a more memorable impact.
4) Search ads only work when customers are searching-about 5 percent of the time. The rest of the time (95 percent), customers are browsing IWebsites (see Figure 1.0) . Figure 1.0
3New research is helping businesses better reevaluate their advertising investments, which are often disproportionately dedicated to search advertising. Microsoft's Atlas Institute recently highlighted the missed opportunities associated with search-only campaigns. In the report, Atlas analysts speculate that marketers only IIlooking at search and related click-through are missing 94 percent of their total engagement touchpoints.
Display Ads: Easy, Affordable, and Powerful
Display ads offer advantages that search advertising cannot, including the ability to scale with growth... [download for more]
|
