Targeted | Mike Smith

Summary of: Targeted: How Technology Is Revolutionizing Advertising and the Way Companies Reach Consumers
By: Mike Smith

Introduction

Dive into the world of targeted advertising in this summary of Mike Smith’s ‘Targeted: How Technology Is Revolutionizing Advertising and the Way Companies Reach Consumers.’ In today’s digital age, companies must provide the right product to the right person at the right time. This is where targeting comes into play, and the techniques of Search Engine Marketing (SEM) play an essential role in achieving this. The book explores two aspects of SEM: Search Engine Optimization (SEO) and paid search, explaining how advertisers utilize user data and high-traffic websites like Google to effectively reach their target audiences. You’ll gain insights into the significance of SEM in modern business and explore the depths of paid search, including the evolution of real-time bidding and the impact of cookies on user profiles.

Targeting in the Digital Economy

In the digital age, targeting has become a crucial factor for businesses to succeed. With an overwhelming variety of products available, consumers demand products that meet their specific needs. To reach potential customers, companies must make their websites easy to find through SEM (Search Engine Marketing), which includes SEO (Search Engine Optimization) and paid search ads. Advertisers benefit greatly by targeting consumers based on their search histories and cookies and placing ads on high-traffic sites like Google. This new market has revolutionized the way businesses advertise and has created a pressure to provide products at the right time, for the right price, to the right person.

The Pros and Cons of Paid Search Advertising

Paid search advertising is the biggest part of online advertising, with $19.9 billion spent on it in the United States in 2013. It directly connects people with their desired products or services, with click-through rates reaching up to 10%. However, competition has made it very expensive, with some keywords costing up to $20 per click. Additionally, click fraud is a growing issue where businesses use it against their competitors, leading to fees for worthless clicks. Nevertheless, paid search remains valuable for businesses that want to reach customers effectively.

The Evolution of Dynamic Paid-Search Advertising

Paid search has come a long way since its static beginnings in the early 1990s. Thanks to a digital mastermind named Bill Gross, the invention of dynamic paid search was made possible. With this system, advertisers can bid for visibility on search engines, creating a fair market price. GoTo.com, founded by Gross, pioneered this system which allowed advertisers to pay only when someone clicked on their ad. This win-win scenario laid the foundation for the industry standard that is used today. In the next part, we will delve deeper into the latest evolution of dynamic paid-search advertising, real-time bidding.

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