Why Advertisers support Adsense
Google is the biggest search
engine on the web. It controls over 40% of Internet searches,
and with that it controls pay per click advertising (pay per
click). PPC involves the advertiser paying a rate for every
click through (CTR) in which the advertisers set. As their
budget increases, their position increases, and as their
position increases, they get more traffic.
This has lead to over 140,000 companies choosing to advertise
with them, and they advertise in a number of ways. The first way
is through is through appearing on Google searches, the second
is through appearing on distributors websites, and the third is
through appearing in distributors search results. As advertisers
appear in Google searches, the question is sometimes asked. Why
do they choose to advertise with distributors as well?
One reason for this is scalability. Those who originally choose
to advertise in search results and who were getting a ROI
(return on investment) will decide at one point that they need
to identify other advertising opportunities. With thousands of
websites which have the capacity to display their adverts the
advertisers can gain further exposure very quickly.
Another reason why advertisers choose to advertise in Google
distributors websites is that it gains them further exposure.
60% of internet users do not use Google, so the advertiser can
appeal to a wider audience through choosing to opt for
distribution channels. Many website users may be looking to buy
a product such as a phone, yet instead of coming across a
website which sells such a product, they come across an article.
If the article is on a website which contains Adsense then
inevitably advertisers can use this channel to penetrate their
audience.
Another reason why advertisers
choose adsense is because they trust Google. The company is
renowned for being an ethical company who are fun to work whilst
providing free services to millions worldwide. Advertisers feel
that money invested with Google is safe. Despite the evolution
of click-fraud and its inevitable disadvantages for advertisers
they appear to understand that this is an issue which Google
wants to stop and hopefully will eventually. Advertisers are
happy that Google admits a problem exits and provides refunds
accordingly.
The trust in Google also stems from a trust in pricing. The
pricing is set by market forces and therefore advertisers never
feel that publishers or Google are overpricing the service. This
means that as long as advertisers are able to advertise they
will continue to do so, if not at the same rates.
Another strong advantage for advertisers is that they can appear
where publishers promote their service. An example of this can
seen if you consider a publisher who is discussing the benefits
of new IT software. If a software retailer appears on the
website then inevitably they will be the likely source from
which the web surfer will purchase the product. If the surfer is
not interested then you could argue that they would not click on
the advert.
The service which Google provides has created an opportunity for
businesses of all sizes to advertise. Although the issue of
click fraud still plagues the service it is till widely regarded
as the best. New businesses attempt to promote themselves on the
web, whilst established brands alike choose to attract interest
in their service using the same technique. |
