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Contextual advertising is one of the most effective methods of Internet advertising these days. Depending on the settings the advertiser may pay either for the number of times his contextual ad was delivered or for the number of clicks on his contextual ad. The cost of one click or thousand loads (impressions) is called a bid. How are the bids in contextual advertising determined? What are the main peculiarities of the bidding process?
If clicks on the contextual ad and transitions to the landing pages of the site are important for the advertiser he may set the cost per click (CPC). If the aim of the advertising campaign is to promote a product and to make a brand more recognizable, it is more reasonable to set the cost per mille (CPM)/cost per thousand (CPT). Cost per click and cost per mille may be set both manually and automatically.
Maximum CPC is the most widespread type of bids. If the advertiser submits such a bid he pays only for user clicks on his contextual ads. Contextual advertising with maximum CPC will be displayed if the entry cost for placement zone will be less or equal to the maximum CPC.
Search contextual advertising is delivered on the search engine results pages, thematic contextual advertising is delivered on the pages of sites that are the members of a particular contextual advertising network (Yandex.Direct, Google AdWords). Every time the advertiser's contextual ad is allowed for the load, the auction takes place. The advertisers compete for the best display position. The advertiser's bid determines if the contextual ad will be shown on a high position. It might also acquire no position at all if the bid is too low or the competition is too strong.
Search contextual ads may be displayed on the search engine results page on several specific positions. To such positions we refer the first three positions after the search bar on the search engine results page by the keywords the user have entered. These positions are called the premium placement zone and are considered the most clickable (i.e. efficient). The premium placement has the highest cost per click.
Search contextual advertising is also displayed on nine positions in the right part of the search engine results page – it is the guaranteed placement zone. The cost per click in this zone is lower, but the efficiency of ads in this placement zone is also considered lower.
When you place your contextual ads in contextual advertising systems you should keep in mind that the cost per click is an important factor that influences on the ad position during the display, but it is not the only factor. Other factors which influence on the position of a contextual advertisement are: relevance of the keywords and text of the ad, quality of the landing pace, CTR (click-through rate) of the keyword.
Thus to increase the position of your ad you don't necessarily have to increase your bid. Minimization of a bid per click or thousand of displays and at the same time preserving high positions is the ultimate aim of competent organization of an advertising campaign.
Certified specialists of WebStudio2U will help you to organize an effective Internet advertising campaign in the most popular contextual advertising systems. The specialists of our web studio have necessary knowledge and skills, considerable practical experience. They will help you to determine the optimal budget for your advertising campaign, select the most convertible keywords, create attractive contextual ads. WebStudio2U will make your contextual advertising campaign really efficient!
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TAGS
contextual advertising,
contextual advertisements,
contextual ads,
cost per click,
cost per mille,
cost per thousand,
bidding,
bids |
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