As the number of sites on the Web increased in the mid-to-late 1990s, 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, 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 moneymakers for search engines. In a market dominated by Google, in 2009 Yahoo! and Microsoft announced the intention to forge an alliance. The Yahoo! & Microsoft Search Alliance eventually received approval from regulators in the US and Europe in February 2010.
The typical Web user might not realize they’re looking at apples and oranges when they get their search results. Knowing the difference enables a searcher to make a better informed decision about the relevancy of a result. Additionally, because the paid results are advertising, they may actually be more useful to a shopping searcher than a researcher (as search engines favor research results).
Each paid ad will likely point to a product page, a specific landing page, or something that has the potential to drive financial results. As paid marketing would suggest by its name alone, you’re spending money on ads to drive specific actions. You need to determine ROAS beyond vanity metrics alone (like engagement or total leads). Say you drove five leads but spent $5,000 on your paid campaign. Your ROAS would be $1,000 per lead, which is a bit steep (depending on your industry). In this case, you’d want to adjust your strategy to avoid wasting money.
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Though a long break is never suggested, there are times that money can be shifted and put towards other resources for a short time. A good example would be an online retailer. In the couple of weeks leading up to the Christmas holidays, you are unlikely to get more organic placement than you already have. Besides, the window of opportunity for shipping gifts to arrive before Christmas is ending, and you are heading into a slow season.