Why Search is so Important to Business
Administrator
You’ve probably read a lot the last few weeks on how keen Microsoft tried to get Yahoo but lost.
Why is Microsoft so keen to catch up in Search? Because search is the key to online advertising dollars. You can put ads in the mail, you can put ads in blogs, but it is mostly when people are searching something, and you give them ads relevants to the things that they are searching, that they are more likely to be responsive to the ads.
Why is this important? Because that is contextual advertising, and also responsive advertising. Contextual advertising is the reason why people feel that online ads are better – it actually tries to use some kind of algorithm and intelligence to sense what is the webpage you are reading, and try to put the relevant ads that is associated with it.
For instance, you are reading a blog of a person who talks about his weekend in Boracay. The blog will sense the blog is about travel, and it may advertise to you in the corner beach resorts, hotels, air travel plans etc. So comparably speaking, the advertisements will be more relevant.
However, just because you are reading a travel blog, or an email about a travel to Boracay does not necessarily mean that you really are looking for cheap air tickets or beach resorts. Based on my experience, advertisements of this sort get a click through of even less than 0.1%. That means you can put the ads there over a thousand times, and not once will it be clicked.
However, if you are doing a search for cheap air tickets, then lo and behold! This is the nirvana of marketers. You actually type on the search engine looking for cheap air tickets…. If I put in an ad for these tickets, you would not only have a higher chance of noticing but actually a much higher chance of you clicking on the ad, and actually buying the ticket!
Thus, the holy grail of getting more online advertisements, which incidentally is slated to increase still very strongly is to be the de facto search engine.
What’s at stake. This year, online ads are said to total 40 billion dollars and Microsoft only has about $2 billion on it, while Google may already have at least 4 times as much. It is estimated that Google now earns more from online ads than Microsoft earns from selling Windows! What’s more, in 2010, or less than 2 years away, online ads are slated to double to 80 billion dollars! Go figure!
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