; Tweaking CPC or sponsored links
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Tweaking CPC or sponsored links


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Sponsored links are one of the most used methods of advertising on the internet, and appeared
for the first time in 1997 at GoTo, pioneers of the marketing model. The same company behind
the advent of sponsored links later switched to the name Overture.

In 2003, the breakthrough technology was bought by Yahoo! for US$1.6 billion, and the
technique was adopted Google when the search engine giant integrated it into its Adwords
program in 2003.

The technique is particularly ideal for launching a product or highlight promotions of products. It
also assists in ensuring consistent presence of products on the key cyberspace platforms.
Currently, the market for sponsored links runs into millions of dollars, slightly higher than
banners and directories.

Sponsored links operate mostly as cost per click (CPC). This system is based on special billing
arrangement as its name aptly implies and controlled through the search engine concerned
(Google AdWords, Yahoo Search Marketing and Microsoft adCenter). Thus the search engine
bills the advertiser every time someone clicks on one of the links.

The purchase of keywords is carried out based on an auction system, meaning to say that the
more a keyword is being sought-after by advertisers, the higher its price. And to ascertain the
breakeven point, the advertiser should approximate the value of the visitors, in other words how
much he/she is willing to pay for a visitor that lands on their site.

To optimize search campaigns, an advertiser has to calculate the cost per action (CPA) of a
visitor and to adjust the bidding budget accordingly in relation to the targeted keywords. A
tracking software is used on the website concerned to observe the conversion rate of surfers
channelled by the sponsored link.

The benefits of this marketing solution is that it can be calculated in real time to reset on the
targeting of a CPC campaign and thus fully optimize the return on investment. The keyword
selection process is crucial for a successful campaign. For the keyword determines the volume
and quality of internet users channeled because they will allow the advertiser to receive
optimized advertising exposure since only interested users of products or services concerned
will be coming round.

For the ad to be most effective, the strategy is to compose various ads that match to different
research scenarios. Some search engines allow for the inclusion of keyword queries
automatically (dynamic insertion), the advertiser must then ensure that all chosen keywords
correspond with the title and description of the ad.

The display URL can also be optimized: rather than publishing the URL extension that will not
suit in the number of predefined characters, advertisers should publish urls that are short and

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