Search ads are clearly different from other forms of advertising. Search ads can be targeted to the specific person and search in context. So, it is easy to see why search advertising makes sense. But, there are a few questions in my mind.
Why not click on search results instead?
People of course click on search results which is why search ad CTR (click through rate) is low. It just amazes me that even a few clicks get to the ads. Just through sheer probability, ads are definitely going to get clicked on. But how did it result in entire businesses thriving on this? Here's what I surmise. At the beginning of time, there was this little probability that a search ad will get clicked on. This prompted an advertiser or two to think, the CPC (cost per click) required justified getting a page in front of an interested user; one that's searching for a related keyword. This prompted other advertisers to jump in the mix because they needed the consumer face time too. Thereby the search engine creates a competing landscape for advertisers. Pitting them against each other for the attention of a user actively looking for something. In the meantime, the user starts seeing more choice on the right rail. The user starts to find something more relevant/valuable in the right rail. Thereby raising ad CTR.
Do people actually know they are clicking on advertisement?
Anyone notice that search ads look exactly the same as search results in most popular search engines? This I believe is key in making paid search work. The right rail looks just like regular search results but with immediate purchase scenarios. A lot of us definitely know there are Ads on the right rail. But subconsciously, our negative bias toward these ads is significantly less because they look just like search results.
What's the optimum point of improving search UX?
The previous question begs this one. Is there a point after which if you improve search UX, your advertisement monetization will start to fall? Imagine a rich search result interface that turns eyes toward it. CTR on ads will drop! Is there a reason why no major search engine is ready to switch to cooler representations of search results?
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