Search engines are the key to the operation of the World Wide Web. This centrality, however, face challenges: search engine providers face the problem of revenue generation, if users expect free content, while advertisers need to attract the interest of seekers. The innovation that effectively addresses these challenges is the use of text ads on search topic, is known as paid search. The method involves advertisers competing position by bidding for in the current top listing … Read more »

Search engines are the key to the operation of the World Wide Web. This centrality, however, face challenges: search engine providers face the problem of revenue generation, if users expect free content, while advertisers need to attract the interest of seekers. The innovation that effectively addresses these challenges is the use of text ads on search topic, is known as paid search. The method involves advertisers competing for top listing position by bidding in live auction and then pay when users click on their ads, so the paid search a flexible and responsible form of advertising. Since its introduction in 1998, paid search is the dominant form of online advertising and led to Google’s $ 140 billion market capitalization in 2006. Analyzes the emergence of paid search and the mechanics of its operation and offers managers guidance on its effective use.
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from
Des Laffey,
Kent D. Seltman
Source: Business Horizons
8 pages.
Release Date: 15, May 2007. Prod #: BH231-PDF-ENG
Paid search: The innovation that changed the Web solution HBR case