PAID SEARCH PAID SEARCH - RHS PAID SEARCH - FEATURED

  • Published on
    19-Dec-2015

  • View
    214

  • Download
    0

Embed Size (px)

Transcript

<ul><li> Slide 1 </li> <li> Slide 2 </li> <li> PAID SEARCH </li> <li> Slide 3 </li> <li> PAID SEARCH - RHS </li> <li> Slide 4 </li> <li> PAID SEARCH - FEATURED </li> <li> Slide 5 </li> <li> IN THE 1990s, STANFORD STUDENTS SERGEY BRIN AND LARRY PAGE DEVELOPED A SEARCH ALGORITHM </li> <li> Slide 6 </li> <li> THEY TRIED TO SELL THEIR SEARCH ALGORITHM TO YAHOO FOR $ 1 MILLION Source: Hal Varians Berkeley Lecture on Search Economics </li> <li> Slide 7 </li> <li> THEY FOUNDED GOOGLE IN 1998 AND WENT PUBLIC IN 2004 </li> <li> Slide 8 </li> <li> AROUND TEN YEARS AGO THERE WERE MANY SEARCH ENGINES </li> <li> Slide 9 </li> <li> TODAY, THERE ARE EFFECITVELY 5 PRIMARY SEARCH PROVIDERS comScore April 2008 Search Engine Rankings </li> <li> Slide 10 </li> <li> AND 3 PAID SEARCH PROVIDERS Based on June 2008 Covaris numbers reported at mediapost (msn is inferred) </li> <li> Slide 11 </li> <li> PAY PER CLICK MODEL $0.25 x 10000 clicks = $2500 $1.00 x 2500 clicks = $2500 $10.00 x 250 clicks = $2500 </li> <li> Slide 12 </li> <li> GOOGLES ORGANIC SEARCH GOAL IS USER SATISFACTION </li> <li> Slide 13 </li> <li> GOOGLES PAID SEARCH GOAL IS USER SATISFACTION ADVERTISER SATISFACTION MAXIMUM PROFITABILITY </li> <li> Slide 14 </li> <li> PAY PER CLICK MODEL $0.25 x 10000 clicks = $2500 $1.00 x 2500 clicks = $2500 $10.00 x 250 clicks = $2500 </li> <li> Slide 15 </li> <li> WHY AD POSITION MATTERS EYE TRACKING Source: Jan Pedersons Search Quality Presentation at Berkeley (2007) </li> <li> Slide 16 </li> <li> PPC - BIDDING ashtonsd90.com bids $1.38 ritzcamera.com bids $1.17 shopcartusa.com bids $3.23 </li> <li> Slide 17 </li> <li> ashtonsd90.com bids $1.38 </li> <li> Slide 18 </li> <li> ritzcamera.com bids $1.17 </li> <li> Slide 19 </li> <li> shopcartusa.com bids $3.23 </li> <li> Slide 20 </li> <li> HOW RELEVANT IS THE LANDING PAGE AND AD? </li> <li> Slide 21 </li> <li> RANK THEM ashtonsd90.com bids $1.38 ritzcamera.com bids $1.17 shopcartusa.com bids $3.23 </li> <li> Slide 22 </li> <li> NORMAL AUCTION ashtonsd90.com bids $1.38, ranks 2 nd and pays $1.38 ritzcamera.com bids $1.17, ranks 3 rd and pays $1.17 shopcartusa.com bids $3.23, ranks 1 st and pays $3.23 </li> <li> Slide 23 </li> <li> VICKREY AUCTION (VCG) ashtonsd90.com bids $1.38, ranks 2 nd and pays $1.17 ritzcamera.com bids $1.17, ranks 3 rd and pays ??? shopcartusa.com bids $3.23, ranks 1 st and pays $1.38 </li> <li> Slide 24 </li> <li> GOOGLE AND YAHOO USE A GENERALIZED SECOND PRICE (GSP) AUCTION Googles customers are ranked based on a quality score * their bid and pay slightly more than the next ranked bidder not exceeding their maximum bid. PRICE AND RANKING ARE RECALCULATED EACH QUERY </li> <li> Slide 25 </li> <li> AD RANK = BID x QUALITY SCORE (QS) ashtonsd90.com 1.38 x 4 = 5.52 ritzcamera.com 1.17 x 6 = 7.02 shopcartusa.com 3.23 x 1 = 3.23 </li> <li> Slide 26 </li> <li> HYPOTHESIZED PRICE = NextPlace(AR) / QS +.01 ashtonsd90.com 1.38 x 4 = 5.52 pays 3.23/4 =.82 ritzcamera.com 1.17 x 6 = 7.02 pays 5.52/6 =.93 shopcartusa.com 3.23 x 1 = 3.23 pays minimum.05 </li> <li> Slide 27 </li> <li> HOW MUCH WOULD NIKON HAVE TO PAY FOR NUMBER 1? HYPOTHESIZED PRICE = NextPlace(AR) / QS +.01 CompanyBidQSAR Ashtonsd90?4 Ritzcamera1.1767.02 Shopcartusa3.231.05 </li> <li> Slide 28 </li> <li> GOOGLE SYNDICATES ITS ADS TO PARTNER SITES </li> <li> Slide 29 </li> <li> GOOGLE SYNDICATES ITS ADS VIA ADSENSE </li> <li> Slide 30 </li> <li> A FEW ADSENSE SITES GENERATE GOOD REVENUE As compiled on mindofmichael.com </li> <li> Slide 31 </li> <li> ADSENSE PARTICIPANTS AGREE NOT TO DO BAD THINGS </li> <li> Slide 32 </li> <li> Slide 33 </li> <li> Slide 34 </li> <li> Slide 35 </li> <li> CLICKFRAUD </li> <li> Slide 36 </li> <li> PAID SEARCH IS SANDBOXED FROM ORGANIC </li> <li> Slide 37 </li> <li> WHEN I CLICK HERE, I DONT CLICK HERE </li> <li> Slide 38 </li> <li> PHOTO ATTRIBUTIONS Slide 37: 'Happy Kids NEED A Healthy Sandbox www.flickr.com/photos/44124458380@N01/567277264www.flickr.com/photos/44124458380@N01/567277264 </li> </ul>