textlink-ads vs. graphical ads

Back again from winter hols and putting advertising right, front and center: In order to create a win-win earning money from advertising while whooing the user with relevant content does not seem to be easy with graphical advertising…

Let´s turn to text-ads for a change. Everyone who uses a search engine (which is about 90% of the Internet Users at least in Germany) knows the little section with sponsored listings that appears above and sometimes on the right hand side and even below the search results.

These listings are mainly served up by three companies: Adsense (by Google, see example above), Yahoo! Search Marketing (formerly known as Overture) and MIVA (formerly known as espotting).

Whenever the User enters keyword(s) - let´s say “dvd madonna” - the search engine technology not only searches its web-crawled index but also searches within a certain set of keywords that advertisers can purchase. If the respective keyword combination has been bought by an advertiser the search results page will show up a text ad that the advertiser has created in the “Anzeigen”-section.

Compared to the graphical ad this methodology has at least two main advantages:

a) dynamic adaptation to context - with every search the ads can change thus matching very closely what the user is interested in

b) easy and relatively cheap to change - text can be edited easier than graphical ads and can be published online within minutes on a self-serve system

So is this the answer to relevant advertising? Stay tuned…


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