AdWords

Google Checkout

Google Checkout is an online payment processing service provided by Google aimed at simplifying the process of paying for online purchases. Users store their credit or debit card and shipping information in their Google Account, so that they can purchase at participating stores at the click of a button. Google Checkout also offers fraud protection, as well a unified page for tracking purchases and their status.

Google Checkout was free for merchants until February 1, 2008. Since that date Google charges merchants 2.0% plus $0.20 per transaction (1.5% + £0.15 for UK merchants). Also since this date, merchants who advertise with an AdWords account will not be charged fees on monthly transactions totaling less than ten times their monthly AdWords expenditure.

A further rise has been announce which will take effect on May 5, 2009.

Prior to launch there had been early speculation that Google was building a product to compete with PayPal. However, the scope of Google Checkout is focused on enabling one-time payments to be made from a purchaser to a merchant. Unlike PayPal, Google Checkout does not permit the use of stored funds, nor allows payments from person to person.

Google Checkout service was first made available in the United States on June 28, 2006. The service later became available in the UK on April 13, 2007.

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Google Analytics

Google Analytics (abbreviated GA) is a free service offered by Google that generates detailed statistics about the visitors to a website. Its main highlight is that the product is aimed at marketers as opposed to webmasters and technologists from which the industry of web analytics originally grew.

GA can track visitors from all referrers, including search engines, display advertising, pay-per-click networks, email marketing and digital collateral such as links within PDF documents.

Integrated with AdWords, users can review online campaigns by tracking landing page quality and conversions (goals). Goals might include sales, lead generation, viewing a specific page, or downloading a particular file. These can also be monetized. By using GA, marketers can determine which ads are performing, and which are not, providing the information to optimise or cull campaigns.

GA's approach is to show high level dashboard-type data for the casual user, and more in-depth data further into the report set. Through the use of GA analysis, poor performing pages can be identified using techniques such as funnel visualization, where visitors came from (referrers), how long they stayed and their geographical position. It also provides more advanced features, including custom visitor segmentation.

Users can officially add up to 50 site profiles. Each profile generally corresponds to one website. It is limited to sites which have a traffic of less than 5 million pageviews per month (roughly 2 pageviews per second), unless the site is linked to an Adwords campaign.

Google's service was developed from Urchin Software Corporation's analytics system, Urchin on Demand (Google acquired Urchin Software Corp. in April 2005). The system also brings ideas from Adaptive Path, whose product, Measure Map, was acquired and used in the redesign of Google Analytics in 2006. Google still sells the standalone installable Urchin software through a network of value-added resellers; In April 2008, Urchin 6 was released.

The Google-branded version was rolled-out in November 2005 to anyone who wished to sign up. However due to extremely high demand for the service, new sign-ups were suspended only a week later. As capacity was added to the system, Google began using a lottery-type invitation-code model. Prior to August 2006 Google was sending out batches of invitation codes as server availability permitted; since mid-August 2006 the service has been fully available to all users - whether they use Google for advertising or not. A new version of the user interface was released on May 17, 2007.

In December 2007, Google rolled out the new ga.js page tag which they recommend to use for all new accounts and new profiles for new domains. Existing urchin.js page tags will continue to work, nevertheless the new tag will allow site owners to take advantage of the most up-to-date tracking functionality, ability to graph multiple data points at once and to track ecommerce transactions in a more readable way.

While the product platform has never been a beta new beta features are added from time to time.

Google Analytics is implemented by including what is known as a "page tag". This is referred to as the Google Analytics Tracking Code (GATC) and is a hidden snippet of JavaScript code that the user adds onto every page of their website. This code acts as a beacon, collecting private visitor data and sending it back to Google data collection servers for processing. Data processing takes place hourly, though it can be 3-4 hours in arrears of real time.

To function, the GATC loads a larger file from the Google webserver and then sets variables with the user's account number. The larger file (currently known as ga.js) is typically 18 KB in size and is only downloaded once at the start of the visit as it will be cached throughout the session. As all websites that implement GA with the ga.js code are using the same master file from Google, a visitor that has previously visited any other website with this code implemented, will also have the file cached on their machine. The result is that the page overhead of including the GATC on web pages is kept to a minimum.

In addition to broadcasting information to Google servers, the GATC sets first party cookies on each visitor's computer. This is used to store anonymous information such as whether the visitor has been to the site before (new or returning visitor), what is the timestamp of the current visit and what was the referrer site or campaign the visitor came from e.g. search engine, keywords, banner, email etc.

Many ad filtering programs and extensions (such as Firefox's Adblock and NoScript) can block the GATC. This prevents some traffic and users from being tracked, and leads to holes in the collected data. Also, privacy networks like Tor will mask the user's actual location and present inaccurate geographical data. Some users do not have Javascript-enabled/capable browsers or turn this feature off. However, these limitations are considered small – affecting only a small percentage of visits .

The largest potential impact on data accuracy comes from users deleting or blocking Google Analytics cookies. Without cookies being set, GA cannot collect data. Any individual web user can block or delete cookies resulting in the data loss of those visits for GA users. The only protection a website owner can use to prevent this, is to ensure best practice policies are upheld on their web site. That includes being transparent in what visitor data is collected and how it is used. This information is usually placed within a privacy policy statement page.

Because GA uses a page tagging technique to collect visitor information via a combination of JavaScript and cookies, it has limitations with websites browsed from mobile phones. This is due to the fact that only the latest phones are currently able to run JavaScript or set cookies (Smart phones and PDAs).

It is important to note that these limitations affect all on-site web analytics tools that collect on-site visitor data using page tags. That is, the small piece of code (usually JavaScript) that acts as a beacon to collect visitor data.

Until September 2008 it wasn't possible to delete Google Analytics accounts, this has since been rectified. For support, users have many options: Google provides direct email support in many languages . You can contact the Google Analytics Support team to ask a question, suggest a feature or access a list of known issues. Google also provides a Google Analytics Help website. In addition, Google Analytics users can get help by visiting the Analytics Help Forum, and search for answers to their questions or post new questions. For professional services and paid services, including technical support, installation, training and consulting, Google has created a global partner network of Google Analytics Authorized Consultants (GAACs), supporting GA users in many regions and languages.

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Google Advertising Professional

Google launched the Google Advertising Professionals program in November, 2004, in response to the growing need for consultants to help the increasing number of new Google AdWords clients with their AdWords campaigns.

Typically, Google Advertising Professionals fees may or may not include: a set-up fee, a monthly management fee, an hourly fee, and/or a percentage of total ad spend. To locate a Google Advertising Professional, Google recommends that you do a Google Maps search for Google Advertising Professionals.

Google Advertising Professionals range from self-employed individuals specializing in search engine marketing to full service ad agencies that cover all types of media (both online & offline).

Every two years, a Google Advertising Professional must re-take the Google Advertising Professional Exam. This ensures that all Google Advertising Professionals are familiar with new developments within the AdWords program.

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Search engine marketing

Search engine marketing, or SEM, is a form of Internet marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs). According to the Search Engine Marketing Professional Organization, SEM methods include: search engine optimization (or SEO), paid placement, contextual advertising, and paid inclusion. Other sources, including the New York Times, define SEM as the practice of buying paid search listings.

In 2006, North American advertisers spent US$9.4 billion on search engine marketing, a 62% increase over the prior year and a 750% increase over the 2002 year. The largest SEM vendors are Google AdWords, Yahoo! Search Marketing and Microsoft adCenter. As of 2006, SEM was growing much faster than traditional advertising and even other channels of online marketing. Because of the complex technology, a secondary "search marketing agency" market has evolved. Many marketers have difficulty understanding search engine marketing and they rely on third party agencies to manage their search marketing. Some of these agencies have developed technology that automates bidding and other complex functions required for the Pay Per Click model. Some of the well known agencies in the field are iProspect, Avenue A and iCrossing.

As the number of sites on the Web increased in the mid-to-late 90s, search engines started appearing to help people find information quickly. Search engines developed business models to finance their services, such as pay per click programs offered by Open Text in 1996 and then Goto.com in 1998. Goto.com later changed its name to Overture in 2001, and was purchased by Yahoo! in 2003, and now offers paid search opportunities for advertisers through Yahoo! Search Marketing. Google also began to offer advertisements on search results pages in 2000 through the Google AdWords program. By 2007, pay-per-click programs proved to be primary money-makers for search engines.

Search engine optimization consultants expanded their offerings to help businesses learn about and use the advertising opportunities offered by search engines, and new agencies focusing primarily upon marketing and advertising through search engines emerged. The term "Search Engine Marketing" was proposed by Danny Sullivan in 2001 to cover the spectrum of activities involved in performing SEO, managing paid listings at the search engines, submitting sites to directories, and developing online marketing strategies for businesses, organizations, and individuals.

Paid search advertising has not been without controversy, and the issue of how search engines present advertising on their search result pages has been the target of a series of studies and reports by Consumer Reports WebWatch. The Federal Trade Commission (FTC) also issued a letter in 2002 about the importance of disclosure of paid advertising on search engines, in response to a complaint from Commercial Alert, a consumer advocacy group with ties to Ralph Nader.

Vested interests appear to use the expression SEM to mean exclusively Pay per click advertising to the extent that the wider advertising and marketing community have accepted this narrow definition. Such usage excludes the wider search marketing community that is engaged in other forms of SEM such as Search Engine Optimization and Search Retargeting.

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Pay per click

Pay Per Click (PPC) is an Internet advertising model used on search engines, advertising networks, and content sites, such as blogs, in which advertisers pay their host only when their ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system.

Websites that utilize PPC ads will display an advertisement when a keyword query matches an advertiser's keyword list, or when a content site displays relevant content. Such advertisements are called sponsored links or sponsored ads, and appear adjacent to or above organic results on search engine results pages, or anywhere a web developer chooses on a content site.

Although many PPC providers exist, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter are the three largest network operators, and all three operate under a bid-based model. Cost per click (CPC), varies depending on the search engine and the level of competition for a particular keyword.

The PPC advertising model is open to abuse through click fraud, although Google and other search engines have implemented automated systems to guard against abusive clicks by competitors or corrupt web developers.

There are two primary models for determining cost per click: flat-rate and bid-based. In both cases the advertiser must consider the potential value of a click from a given source. This value is based on the type of individual the advertiser is expecting to receive as a visitor to his or her website, and what the advertiser can gain from that visit, usually revenue, both in the short term as well as in the long term. As with other forms of advertising targeting is key, and factors that often play into PPC campaigns include the target's interest (often defined by a search term they have entered into search engine, or the content of a page that they are browsing), intent (e.g. to purchase or not), location (for geo targeting), and the day and time that they are browsing.

In the flat-rate model, the advertiser and publisher agree upon a fixed amount that will be paid for each click. In many cases the publisher has a rate card that lists the CPC within different areas of their website or network. These various amounts are often related to the content on pages, with content that generally attracts more valuable visitors having a higher CPC than content that attracts less valuable visitors. However, in many cases advertisers can negotiate lower rates, especially when commiting to a long-term or high-value contract.

The flat-rate model is particularly common to comparison shopping engines, which typically publish rate cards.. However, these rates are sometimes minimums and advertisers can pay more for greater visibility. These sites are usually neatly compartmentalized into product or service categories, which allows for a high degree of targeting by advertisers. In many cases, the entire core content of these sites is paid ads.

In the bid-based model, the advertiser signs a contract that allows them to compete against other advertisers in a private auction hosted by a publisher or, more commonly, an advertising network. Each advertiser informs the host of the maximum amount that he or she is willing to pay for a given ad spot (often based on a keyword), usually using online tools to do so. The auction plays out in an automated fashion every time a visitor triggers the ad spot.

When the ad spot is part of a search engine results page (SERP), the automated auction takes place whenever a search for the keyword that is being bid upon occurs. All bids for the keyword that target the searcher's geo-location, the day and time of the search, etc. are then compared and the winner determined. In situations where there are multiple ad spots, a common occurance on SERPs, there can be multiple winners whose positions on the page are influenced by the amount each has bid. The ad with the highest bid generally shows up first, though additional factors such as ad quality and relevance can sometimes come into play (see Quality Score).

In addition to ad spots on SERPs, the major advertising networks allow for contextual ads to be placed on the properties of 3rd-parties with whom they have partnered. These publishers sign up to host ads on behalf of the network. In return, they receive a portion of the ad revenue that the network generates, which can be anywhere from 50% to over 80% of the gross revenue paid by advertisers. These properties are often referred to as a content network and the ads on them as contextual ads due to the fact that the ad spots are associated with keywords based on the context of the page on which they are found. In general, ads on content networks have a much lower click-through rate (CTR) and conversion rate (CR) than ads found on SERPs and consequently are less highly valued. Content network properties can include websites, newsletters, and e-mails.

Advertisers pay for each click they receive, with the actual amount paid based on the amount bid. It is common practice amongst auction hosts to charge a winning bidder just slightly more (e.g. one penny) than the next highest bidder or the actual amount bid, whichever is lower. This avoids situations where bidders are constantly adjusting their bids by very small amounts to see if they can still win the auction while paying just a little bit less per click.

To maximize success and achieve scale, automated bid management systems can be deployed. These systems can used directly by the advertiser, though they are more commonly used by advertising agencies that offer PPC bid management as a service. These tools generally allow for bid management at scale, with thousands or even millions of PPC bids controlled by a highly automated system. The system generally sets each bid based on the goal that has been set for it, such as maximize profit, maximize traffic at breakeven, and so forth. The system is usually tied into the advertiser's website and fed the results of each click, which then allows it to set bids. The effectiveness of these systems is directly related to the quality and quantity of the performance data that it has to work with - low-traffic ads can lead to a scarcity of data problem that renders many bid management tools useless at worst, or inefficient at best.

In February 1998 Jeffrey Brewer of Goto.com, a 25-employee startup company (later Overture, now part of Yahoo!), presented a pay per click search engine proof-of-concept to the TED conference in California. This presentation and the events that followed created the PPC advertising system. Credit for the concept of the PPC model is generally given to Idealab and Goto.com founder, Bill Gross.

Google started search engine advertising in December 1999. It was not until October 2000 before the AdWords system was introduced, allowing advertisers to create text ads for placement on the Google search engine. However, PPC was only introduced in 2002; until then, advertisements were charged at cost-per-thousand impressions. Yahoo! advertisements have always been PPC-based since their introduction in 1998.

For a more in-depth presentation of PPC's history, see Fain and Pedersen (2006).

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