Finding Customers Through Web Advertising
By Marci De Vries
Smart Woman, November/December 2005

 

“I started marketing in search engines because the marketing firm showed me reports about how many people saw my ads, and how many people clicked through to my Web site.”
                                                                – Janet Miller, CEO, Computer Management, Inc.

I recently sat down with Janet Miller, president of Computer Management, Inc., a high-tech recruiting firm located in White Marsh, MD. She is a firm believer in search engine advertising and asserts that it helped keep her business alive during the technology hiring slump of 2003 and 2004.
"I wasn't entirely sure how this would all work out in the beginning," says Miller. "My Web designer and I had a conversation about how to drive visitors to any new site, and he recommended I talk to a search engine opti­mization and online marketing firm." 

"I started marketing in search engines because the marketing firm showed me reports about how many people saw my ads, and how many people clicked through to my Web site,” says Miller.

Since then the search engines have become even more sophisticated in their reporting ability. Now Miller receives reports that show exactly what phrase was searched on by engine users, whether or not they clicked through, and whether or not they sub­mitted an inquiry form.

"These new reports have transformed the way 1 run my campaigns," says Miller. "After I learned which phrases actually turned into customers, I changed the way I bought phras­es and targets for my entire campaign. Now my ad budget turns into real customers, and I can trace how my marketing dollars turned into sales."

Miller has devoted her entire marketing budget to search marketing and pulled her ads from the Yellow Pages and newspaper classified sections. "Those vehicles didn't do much," says Miller. "And I couldn't track what was happening. [Online marketing] is what works for me."

So how does it work?

The search engines have dedicated part of their search results to advertisement. On Yahoo and Google for example, ads appear at the very top of the results and as ad boxes on the right side of the results. The ads at the top of the search results can he identified by their light blue background.

Advertisers tell the search engines how much they are willing to pay to see their ads appear in these locations, and then the ads appear in these locations free of charge until a search engine user clicks on the advertisement.  For every click, the advertiser is charged the fee they said they would pay for that advertising position. The main engines will accept bids as low as 10 cents. Smaller engines will accept bids as low as five cents.

Because search engine advertising is run by computers, it is easy to track what hap­pens when search engine users interact with an ad. The engines show advertisers helpful information such as how many people saw the ad, how many people clicked through on the ad, which ads generated the most clicks, and how many people went through the advertiser's sits: and purchased an item or filled out an inquiry form.

What is this doing to advertising?

Some people have asked me if this kind of advertising will be me downfall of "tradition­al" advertising. I honestly don't think so. What will change is the practice of purchas­ing ads because "it sounded like a good idea."

The Internet has proven itself useful for more than just ad placement - it is also an inexpensive way to learn about the people you want to reach with advertising. An adver­tiser can put out several different marketing messages and see in a few days whether or not these messages draw attention or not.  They can also survey me people who respond to the ads to see if they are indeed the right audience for their product or service.

     Once an advertiser knows what message works well and draws the best audience, they can take this refined message out to traditional media and enjoy greater response because their ads are more effective overall.

Why would I use regular advertising after being on the Web?

Because believe it or not, there are times when people are not on the Internet. A well­ crafted ad in a medium that people can touch and interact with has enormous impact. And let’s not forget that marketing rule that has been the basis of effective campaigns for decades: people need to see an ad about six times before they will remember to purchase a product. It works well for some of these impressions to come from the 'real world.'

Seeing an ad on the Web and then rein­forcing it with print ads, radio and even TV will help drive customers faster than using one kind of advertising alone.

However, for new companies or smaller advertisers, the Web is a good way to build voice and generate those crucial new clients on a limited budget. Larger companies will also benefit greatly from its ability to generate business while refining its messages. The Web can be a meaningful addition to the media mix for almost every kind of company.

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