Overture and Google: Internet Pay Per Click(PPC) Advertising Auctions By Andrew Ellam Presenter: Parth Patel

Market Development| 2 Market Development Overture(Later Acquired by Yahoo in 2003) was the first to introduce PPC concept in late ‘90s. An online auctions system where advertisers would bid on search terms and submit an Advert along with the search term Highest bidder’s Advert comes first for the particular search terms Overture used Web banner adverts.

3 Market Development (Cont.) Reduced Click Through Rate(CTR) After this Overture makes agreements with major ISP and Web Browser to reach larger web users. Though PPC adverts were better distinguished from non- paid listings following this warning, industry observers suspected a significant proportion of users remained unaware that the links they were clicking on were in fact adverts.

Google Adwords Select(Cont.) 4

5 Bidding Mechanisms and Strategies Typical bids range from $0.05 to $3.00, but some bids where placed as high as $40.00 (for ‘real estate’, ’class action lawsuit’ )

6 Bidding Mechanisms and Strategies(Cont.) Google also Provided tools to estimate likely clicks and ranking, for particular bid. It was not accurate as ranking of advert depend on CTR.

7 Bidding Mechanisms and Strategies(Cont.) Minimum bid rate in overture and Google. Handling misspelled queries. Checking relevance of search term with Adverts. Improve the ‘conversion rate’ by choosing(bidding on) proper search terms. Conversion rate and Return On Investment(ROI). Auto bidding and ‘Competition buster’.