basic features of contextual advertising

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30 minutes Introductory Guide to

Google AdWords

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Table of Contents Terms .................................................................................. 3

Context Advertising in Google ............................................. 4

Payment Options ................................................................ 6

Creation of a Google AdWords Account ............................... 7

Acquaintance with the Interface .........................................10

Account Structure: ............................................................. 11

Stages of Advertising Campaign Development: .................12

Keywords ...........................................................................12

Advertisements .................................................................. 13

Advertisement Groups .......................................................14

AdWords Editor ..................................................................14

Target Page ........................................................................ 15

Keyword Quality Index ....................................................... 15

Rate Allocation ................................................................... 15

Basics of Bid Management ................................................ 16

Conversion Tracking .......................................................... 16

Reporting ........................................................................... 17

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Google Analytics ................................................................18

Terms Context advertising is advertising in search engines and networks of associate sites.

Click is active when a user notices an advertisement, chooses its title, and is redirected to your site.

CPC (Cost per Click) is the sum you pay for every click on an advertisement. The AdWords Discounter automatically brings down the price for the click to the minimum necessary for your advertisement to maintain its position. The actual CPC will be either lower or equal to the CPC rate you specified on the levels of advertisement groups, keyword, and advertisement location.

CTR (Click-Through Rate) shows the percentage of the users who clicked on your advertisement after having viewed it. It is an indication of the relevance of your advertisements and keywords to the search requests of users. CTR will let you evaluate the efficiency of your advertisements and keywords.

CTR works by dividing the number of views on advertisement by the number of click throughs, thus producing a percentage. CTR is calculated separately from advertisements and keywords and is a unique indicator of the campaign’s effectiveness.

Targeting aims the advertisement at an audience defined by special criteria. There are subject, geographical, temporal, socio-demographic, and behavioral types of targeting.

According to the advertisement format, textual, graphical, and video advertisements are distinguished. For instance, context media advertisement refers to graphics and videos.

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A target page is an active web-page to which a user is redirected after clicking on your ad. The web-address of such a page is called ‘target URL’ or the ‘URL of click transfer’.

Conversion is when the click on an advertisement results in valuable behavior, for instance purchase, registration, view of the page etc.

Context Advertising in Google When advertising and promoting your site on the Internet, it is important to always consider your completion. Context advertising, alongside search optimization and banner advertising, is one of the main types of site promotion for attracting target web visitors. Unlike traditional Internet advertising, context advertisements are displayed only on sites with relevant topics or in search engines after a request containing main keywords. Such an approach ensures attraction of the most interested audience.

The main advantage of context advertising is CPC (Cost per Click) – the advertiser pays only for the transfer to the ad, but not the view. Context advertising is based on the auction principle: the advertiser sets prices for a click which compete with the rates of other advertisers. This allows you to get visitors for a required price and work with budgets of any kind. It is also possible to aim context advertising at a particular region, fix the time limits of advertisement demonstration, and use a great variety of other options. The integrated analytic tools will let you trace all actions of the site visitors (for example, purchase), which makes it possible to assess the effectiveness of advertising and evaluate the investment proceeds.

Context advertising can help with brand promotion as well as increasing sales.

The launch of an advertising campaign takes about one day. Immediately after, the advertiser will have target visitors on his\her site.

Example of an ad on the search page:

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Example of an advertisement on the site:

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Payment Options

for a thousand demonstrations

for a click

for an action

Targeting aims the advertisement at the audience in accordance with special criteria.

Types of targeting: network targeting. Campaigns can be targeted at a search network

(Google Search and other search partners such as ICQ Search) and\or at a context media network of sites in Google AdWorks;

subject targeting targets sites chosen according to a relevant topic. This is done using keywords;

geographical targeting targets states, regions, cities, and arbitrary areas. State targeting is carried out with the help of domains. Every country has its own Google site: google.com.ua in Ukraine, google.ru in Russia, google.de in Germany, etc. If the campaign targeting focuses on Germany, the advertising will be available only to the users of the google.de search engine (although the user can be in Russia). Regional and city targeting is fulfilled with the use of the IP address of a particular region. Moreover, it is possible to specify a circumference or an arbitrary area with help of the coordinates within which users can see the ad;

temporal targeting is based on the days of the week or time of day;

socio-demographical targeting, or interest targeting, uses the gender, age, and interests of the user. This type of targeting is suitable for big portals and sites which have access to the users' personal data (for example Odnoklassniki.ru);

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behavioral targeting. The basis for this is the previous activity of a user. For instance, when a user searches for a cell phone and then visits an entertainment site, the system will display an ad for cell phone on this site.

Creation of a Google AdWords

Account

1. Registration of an e-mail in Gmail on the page http://gmail.com.

2. Creation of a Google AdWords account on the page http://adwords.google.com.

http://gmail.com/

http://adwords.google.com/

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3. Account Setup

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It is beneficial choose the currency in which payments will be made. If, for example, your commercial income is received and accumulated in dollars, then you should choose dollars.

You must then choose the method of payment and give the payment information. To do this, choose the Payment Data Settings on the Payment inlay. Choose your country as the location. Payment with a credit card has an option of post-payment, meaning money will be withdrawn from your card when a necessary expense sum is accrued. The credit card must be open for payment operations on the Internet. Any bank can provide more information on this option. It is important to take into account that if you make a payment by means of bank transfer, a 20% VAT and a 0.5% advertising tax will be charged.

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Acquaintance with the Interface

Google AdWords Interface consists of the following tabs:

Home page – contains main data about the account, campaigns, notifications, etc.;

Campaigns – consists of tabs entitled Campaigns, Advertisement Groups, Settings, Advertisements, Keywords, and Networks where you can find information about the account details and settings. The tree diagram of the account is located to the left of the page. To the right, a date box is situated which will display the statistics of particular dates;

Optimization – this tab contains guidelines on account optimization as well as helpful instruments (traffic evaluator, keyword and location prompt, troubleshooting and preview of ads, history of changes, etc.);

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Reporting – this tab allows you to create reports, conversions, and conduct Google.Analytics;

Payment – here you can specify payment details and can view the summary of received and withdrawn money;

My Account – this tab contains account settings (language, time zone, notifications, and access)

In the right upper corner, you can see the ID number of your account (a set of figures of the format XXX-XXX-XXXX) and a support link.

Account Structure: One account can serve no more than 25 campaigns;

Each campaign can contain no more than 100 advertisements;

One account may have no more than 50,000 keywords.

Campaign Campaign

Campaign

Advertisement

Group

Advertisement

Group

Advertisement

Group

Advertisements Advertisements

Advertisements

Keywords Keywords Keywords

Account

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Stages of Advertising Campaign Development:

targeting (sales, informing visitors);

evaluating the cost of one achieved goal;

determining of the monthly budget;

building the account structure (arranging keywords into advertisement groups and advertisements - campaigns according to the topic);

keyword selection. The keywords must represent the products of the site.

Keywords Keywords select the users’ requests which must produce an advertisement. Keywords are inputted via match.

Types of Keyword Match:

Exact match – in this case an advertisement is shown if a user’s request corresponds to the keyword within a symbol. For example, if the keyword “notebooks” is used in the exact match, an advertisement will be displayed when a user inserts the word “notebooks”, but it will not be shown if a user types the word “notebook”;

Phrase match – an advertisement is demonstrated if a user's request contains the keyword or any words before or after this word. For instance, a user states the key phrase "sale of notebooks” in the phrase match. An advertisement will be shown if a user types “sale of notebooks” or “sale of notebooks in Kiev”, but it will not be shown if s\he inserts “ sale of cheap notebooks”;

Broad match – in this case an ad is displayed if a user’s request is represented by a singular or plural form, a case, incorrect spelling, a

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synonym of the keyword, or if it contains any additional words. For example, the keyword “notebooks” is inserted in the broad match. An ad will be demonstrated if a user types “notebooks”, "sale of notebooks in Kiev”, “sale of cheap notebooks".

If you do not want the words in the broad and phrase match to produce unwanted ads, you can use minus-words. For instance, if company which sells notebooks and uses the word “notebooks" in the broad match, an ad will be shown after the requests saying "notebooks sale”, “asus notebooks”, and “notebooks repair”. The latter request is improper and it is recommended to add the word “repair" to the list of minus-words. Minus words have the same match type as common words.

Advertisements A text advertisement consists of a title (no more than 25 symbols), 2 lines of description (35 symbols in each), a displayed URL (35 symbols), and a target URL (1024 symbols). The title represents the gist of an ad and as a rule contains the keyword. The description lines contain the information about the product, its competitive advantages, price, stocks, and delivery alongside a call for action (e.g. to buy, to order, to compare, etc.). The displayed URL contains the site address where it is allowed to insert a shortened name of a site section after a slash "/". If for instance an ad redirects you to a page with notebooks, the displayed URL Magazin.com.ua/Notebook is acceptable. The target URL is the address of the target page and is not displayed in the advertisement.

Notebooks Notebooks sale for the best prices. Pick and buy! Magazin.com.ua/Notebook

Composing several versions of an ad to choose the most clickable one is highly recommended. All the campaigns are fixed on default so that the system chooses and shows the best ad according to the cumulative statistics data.

It is also advisable to include keywords in the text of the ad because they are set off in boldface font, making the ad more attractive for users.

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Dynamic Keyword Insert If the list of keywords contains similar words or words of the same type, such as "roses", "tulips", or "orchids", it is better to create an ad where the required keyword will be displayed according to a user’s request. To do this, use the following construction: {Keyword: Flowers} which you can locate anywhere in the ad. Thus, the user's request will be demonstrated instead of the construction {Keyword: Flowers}. If the request contains more symbols than allowed, a word on default will be displayed (in this case it is the word “Flowers”).

The dynamic insert should be used in all similar cases, especially in the title of the advertisement. In this situation a visitor is more likely to pay his\her attention to the ad which corresponds exactly to his\her request.

Google AdWords lets its users insert phone numbers and addresses into their advertisements. It is extremely useful for companies which promote services available by phone (such as taxi service or pizza delivery). In this case it is easier for a user to type the phone number than to visit the site. The advertiser does not pay for the click on the ad. Especially for this, advertisement broadening is available.

Advertisement Groups An advertisement group contains keywords and advertisements. At the group level, a user can specify the general rates for all keywords.

Campaigns Campaigns unite advertisement groups on a special principle. It is possible to specify the daily budget, the language and geographical targeting, demonstration in the search and\or content network, the date of the beginning and the end of the campaign.

AdWords Editor

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AdWords Editor is a program which will make your work with the account faster and easier. Among the handy function are: fast navigation by means of the campaign tree diagram, copying and pasting of any account elements, downloading and viewing statistics data, exporting and importing files, offline access to the account, a record of changes, quick search of any elements, renaming, and rate changing for a bigger list of keywords.

Target Page The target page, or the landing page, is the site page to which an ad leads. It is best to choose this page so that a user can find required information as quickly as possible. If the ad is devoted to the sale of the Apple MacBook Pro notebook, a visitor should be redirected strictly to the page of this model, but not to the home page. A quality target page must have convenient navigation. It should not be overloaded with graphics; it should contain detailed information about the product and have a satisfactory traffic rate.

Keyword Quality Index Every keyword has its own quality index in the gamut from 1 to 10. The quality index indicates the degree of match of the word to the advertisement and shows how clickable the ad is as well as how convenient the target page is for a user. The higher the quality index is, the lower the price of a click is for maintenance of the ad's position. As a result, AdWords makes sure that ads which perfectly answer users’ requests are at the top of the page.

The quality index multiplied by the maximal click rate is called the advertisement rating. All the ads are arranged in groups according to the rating.

The ads which have high quality rating and price for a click are displayed over the immediate results of the search on one of the three available positions.

Rate Allocation

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When keywords are specified in the account, the system evaluates the assessed rate for demonstration on the first page according to the quality index and competition for the given topic. It is recommended to adhere to these rates when specifying price for a click. The general strategy implies fixation of the rate which is higher than the one which is supposed to be used in the future. It is done so the ad can obtain a higher position and as a result higher CTR and quality index.

Later, this quality index will let the user fix a low rate for a click to maintain the current positions. In the case of low rates initially, the keyword can get a low position or be absent on the first page, which can result in loss of traffic by the advertiser. Beside the keyword quality index, there is also a general account quality index which is important when new keywords are added to the account. The assessment of the account quality index takes about 2 weeks.

Basics of Bid Management Bid Management (rate fixation principle) is based on the goals set by the advertiser. If a maximal traffic is required, it is better to fix maximal rates. For the image of some advertisers, it is important that ads are placed not lower than a particular position. The inverse task is to get the maximal traffic within the limits of the available budget. To make it possible, it is best to gradually drive the rates lower until the prices of all the clicks reaches the wanted sum. There is a special function of automatic rate fixation for this purpose. If the aim of the advertising campaign is sale, then it is necessary to trace the keywords which lead to sales and the ones which do not. It is also obligatory to drive the rates for these words higher and lower in order to get more of the selling traffic or minimize the improper traffic. Keyword effectiveness is possible to trace with the help of the conversion tracking instrument Google AdWords or by means of a free web analytics system Google.Analytics.

Conversion Tracking Google AdWords lets its users track performance of a necessary action on the site, in other words - conversion. As an act of conversion, one can specify hit of a particular page of the site, for instance - the contact page or the page "Thank you for the Purchase!" You can create a new conversion in the tab Reporting - Conversions - New Conversion after stating your name and inserting the code on

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a special page. The conversion data will be automatically displayed in the account statistics information.

Reporting Google AdWords creates reports on advertising effectiveness. The reports show the information about the number of clicks, demonstrations, CTR, average price per click, update status, and the number of conversions. A report can cover any period of time and can serve any level of account specification. According to the level of specification, reports are divided into account, campaign, advertisement group, advertisement, keyword, and location reports. Moreover, it is possible to draw up reports on viewed site pages, search requests done by users, geographical source regions of the traffic, degree of users’ involvement, and demonstration quota. A choice of time periods according to dates, days of the

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week, and day time is also available. You can save a created report as a template and schedule regular updates and e-mail delivery.

Google Analytics Google Analytics is a free tool of web statistics by Google which lets its users analyze site traffic, traffic sources, etc. You can create a Google Analytics account in the Google AdWords interface in the tab Reporting – Google Analytics.

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During setup, the program will offer you a tracking code which you should paste on every page of the site. There are different versions of this code when sites are located in different domains and subdomains.

The account created in this fashion will automatically be linked to Google AdWords which will receive data about keywords, advertisement groups, and campaigns which redirected the user to the site. Only one account can be linked to Google AdWords.

Google Analytics makes it possible to set a wider range of goals than Google AdWords does. As a goal, you can set URL transfer, connect time, and number of viewed pages.

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basic features of contextual advertising

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