Search Engines

Server Farms

- This is where search engines retain all of the information gathered by spiders - Cost of server farms is a barrier to entry for other companies to the industry ($$$) - All servers are triple backed up, and if one server fails, it will not disrupt the overs (fault tolerant) • https://www.youtube.com/watch?v=zRwPSFpLX8I

How does Google rank its websites?

- Uses page rank - Secret Google algorithm - Uses the amount of links associated withh the website

Affiliate Programs

- When websites get a money percentage from the customers that buy something from a link through their site Example: Amazon with the ads shown on their website

What is the different between Google Adwords and Google Adsense?

Adwords displays ads on Google and relevant sites AdSense puts AdWord's advertisements into private sites (in return for Google paying them a percentage of revenue from user clicks or ad impressions)

Why does Google advertise on private sites and pay them?

Google can attract more customers from these private websites for other companies - This causes other companies to want to advertise with Google (thus bringing in more $$$)

How does Google use its analytical data to target Adwords candidates?

Google uses Cookies to tailor the ads to what the user is interested in - This makes it much more likely that the ad will be clicked on - Also uses geotargeting to find relevant ads in the area

Pull Marketing v Push Marketing

Pull Marketing - More concerned with retention of customers - Want to lure customers into a website or store, so the advertisements has to set an image - Often, sales (20% off) is a pull tactic - Not referring to a specific item Push Marketing - The act of pushing products onto the customer - This is typically for short term sales, not concerned with retention

Query

Search

Click Fraud

When a company or a person generates an application that keeps on clicking on a certain ad (when it is Pay Per Click) to charge a certain company an unnecessary amount of money

Pay Per Click (PPC)

When an advertiser pays every time the ad is clicked on (common with search engines)

Cookies

- A small piece of data sent from a website and stored in a user's browser - Helps collect history and information that can better tailor ads to your interest Example: You searched for car parts - You are likely to receive ads that relate to car parts (Part of the quality ranking of Google) - Tailors websites to display what you may be interested in

Cost per Action (CPA)

- Advertiser only pays when a customer signs up and buys something through the link - Not simply when it is seen or clicked on

Click Through Rate (CTR)

- Also part of Pay Per Click - 5 clicks every 100 impressions - 5% click rate -- actually very good

Cost Per Click (CPC)

- Amount of money an advertiser pays for each click on an ad - Is a big part of the process of how google allocates the advertisements

AdSense

- Brings Google 30% of revenues - Brings ads from Google to private websites (can target more audiences) - Delivers Adword's ads to individual sites - Google then pays the web publishers for the ads displayed on their websites based on the user clicks on the ads - All websites need to do is put a little html code at the end of their website - Term "Ads by Google"

Adwords

- Displays relevant ads on Google search pages and partner sites

Be able to understand the mechanics of search, including how Google indexes the Web and ranks its organic search results.

- Google searches databases, not the actual web - Spiders search the actual web for information that is brought to the Google databases - Ranks its organic searches by the information gathered from the spiders (most relevant) - Also uses PageRank to rank based on link association - Websites that appear on the google page are not links, but are copies - Only when you click on them does it bring you to the actual website

Why is Google giving the Android operating system away? What is its incentive to do this?

- Google wants more people to go online so that they can see more advertisements - With the low barrier of entry for companies to create phones, more people will be carrying devices that allow them to view advertisements - By giving it away, Google makes more money in the end

Probability of Transaction: HIGH CPC: HIGH

- High sales (good), High CPC (bad) - Pivot data and try to look for patterns in the top performing ads for this publisher - Create a campaign to follow these strategies

Probability of Transaction: HIGH CPC: LOW

- High sales (good), Low CPC (good) - More funding should be allocated to this publisher so that you can even improve the standing from where you are

Pagerank

- How Google ranks its pages - Ranks pages that are influential higher - The links with more links are considered more influential and are ranked higher

Geotargeting

- Identifying a user's physical location to tailor ads that are relevant to them

Types of Ads

- Image - Rich media ad (video) - Interstitials (ads that run before a user can see a website's contents)

Dark Web

- Information that is hidden from spiders because the website wants to stay private - Example: Facebook profiles cannot be seen in google

Probability of Transaction: LOW CPC: LOW

- Low sales (bad), Low cost (good) - Improve keywords in ad to improve Click through rate - Improve design or copy of site

Probability of Transaction: LOW CPC: HIGH

- Low sales, High Cost - Should cut some funding and reallocate the advertisements to a place that would be more likely considered to have high transaction (clicks)

What kind of ads does Google make money in? What network strategies is Google leveraging to gain network effects?

- Makes most of its money in the Pay per click ads - Advertisers pay every time there is a click - With every search, there is an action - advertisers specify the max CPC they are wiling to pay, and the winner pays the 2nd winner/quality + .01

Link Fraud

- People try to create fake links to their website to make it rise in the ranks on Google

Search Engine Optimization (SEO)

- Process of improving a page's search results - Some use link fraud - Want to maximize the number of visitors to a website by ensuring that the website is ranked highly on the search engine list - Earlier websites generally have more traffic

Spiders, Web Crawlers

- Robots that crawl the pages to update information in the search engine - Browses popular pages a few times an hour and other pages once every few days - Report back information to the google databases

Organic Search Result

- Search engine results that rank websites according to relevance

Internet Ad Bureau (IAB)

- Sets requirements and standards for ads so that they don't have to be modified for every website they go on

How to Avoid Spiders

- Some websites want to remain private - They put an HTML code secretly in their website that tells them to stay away - Information is called the Dark Web

Cost Per Thousand (CPM)

- The advertiser pays for every thousand of impressions (online ads) that are displayed

Pricing of Google Advertisements

- With every search, there is an auction - First, companies place a bid for each ad when it is clicked on and what they are willing to pay - Then Google ranks the quality of the ads by popularity of the words, relevance - Google creates a ranking index by multiplying the CPC big and the Quality - To find ACTUAL CPC, Google takes the ranking index of the previous bidder and divides it by the quality score of the current bider and adding .01 Example: Brand CPC bid Quality Score Ranking Index Taco Statio $.40 18 .40 * 18 = 7.2 CPC: 6.5/18 +.01 = .37 Taco Deli $.65 10 .65* 10 = 6.5 CPC:3.8/10 + .01 = .39 Torchies $.25 15 .25 * 15 = 3.8

Transaction Conversion Rate

- transaction based on a certain number of clicks Example: Number of plane tickets bought / number of clicks on an ad

Steps of Google Search

1. Google searches for the data in a database • The results that come up on the page are the server's "copy" 2. Spiders all throughout the day search through different websites gathering information and giving it back to the databases 3. Google then uses its PageRank algorithms to rank the websites • Webpages that have more pages linking to them are ranked higher • Each page gets an over all score 4. You click on the link and it takes you straight to the real website