Search: What is it?

I think it's a fair assumption to make that anyone who's used the Internet has heard of Google. The term "Google it" has become synonymous with the phrase "search it"; it can even be argued that it has replaced it in some demographics. So what exactly is this Google and how did it earn the nickname "Big G"? Not getting into all the details of what Google is, I will mention what it is known for: Search ads. The bulk of Google's revenue comes from selling ad space on their search results page and just like real estate, those prices vary depending on where your ad appears. Google isn't the only player in this space; there are also Yahoo, MSN, and Ask. However, Google does have the lion's share of the volume (approximately 70%) in the Search space so for the sake of simplicity, we'll just focus on that.

As the economy continues to worsen, I feel that Search will be the route most (smart) companies will want to explore. Unlike traditional media (i.e., TV, Print, etc.), Search has a different cost structure. In traditional media, you pay up front and in Search, you pay after the fact. For example, if I wanted to advertise during the Super Bowl, it would cost me north of a million dollars at minimum and I would have to pay that up front to the broadcaster. However, in Search, you pay after Google (or the other Search Engines) has calculated the amount of clicks your ads have received. This is more cost-efficient because you are only paying for actual transactions (i.e., clicks) and not impressions, like with TV. So with TV, you are paying to appear and with Search, you are paying to get noticed. Here's an analogy that I feel will help to clarify: Think of TV as buying a Kiton suit; everyone around you will notice the suit but everyone may not comment on it. Now think of Search as a really nice suit from Banana Republic, where lots of people notice it and many people compliment on it. With Search, you pay a fraction of the price and you're not only getting noticed but you are also sparking an action from the users, in this case being a click. In terms of efficiency, Search is a no-brainer. However, I don't want to come off as subjective. If you want to build awareness to the masses then TV is still the way to go; if you want to build awareness to those who are more tech savvy and resort to the Internet for information, Search would be your best option. In the big picture, all marketing mediums (i.e.,TV, Search, Display/Rich Media) have to work in tandem to produce results.

Now that I've established the basic fundamentals of Search (hopefully!), I'll write more in-depth postings in the future. In the meantime, if you are eager to learn more about Search and cannot wait for my next posting, I suggest reading Avinash Kaushik's blog. He is an Analytics Evangelist for Google and has some very insightful stuff.

Cheers.