Paid search advertising has not been without controversy and the issue of how search engines present advertising on their search result pages has been the target of a series of studies and reports by Consumer Reports WebWatch. The Federal Trade Commission (FTC) also issued a letter in 2002 about the importance of disclosure of paid advertising on search engines, in response to a complaint from Commercial Alert, a consumer advocacy group with ties to Ralph Nader.
Pay Per Click (PPC) advertising is the most common form of paid SEM. PPC ads are the ones you see at the top of your Google search with the word “ad” written discreetly next to the link. Search engines such as Google sell keywords to the highest bidder. One of the nice things about this form of advertising is that – as the name suggests – you only pay for the ad when someone actually clicks on it.
At our agency, we work with sites of varying sizes, from very large to quite small, and recently, we have noticed a trend at the enterprise level. These sites aren’t relying as much on Google for traffic any more. Not only are they not relying on Google traffic, but also, the sites are getting less than 10 percent (or slightly more) of their organic traffic from the search giant.