The Components and Impact of Sponsored Search Bernard J
IT SYSTEMS PERSPECTIVES The Components and Impact of Sponsored Search Bernard J. Jansen, Pennsylvania State University Theresa B. Flaherty, James Madison University Ricardo Baeza-Yates, Yahoo! Research Lee Hunter, Google Brendan Kitts, Microsoft Jamie Murphy, University of Western Australia Sponsored search advertising has dramatically impacted search engines, consumers, and organizations, and will continue to do so in the foreseeable future. ccording to market- Florida Golf current search engines need to crawl research firm IDC, $35 for 18 holes plus a cart at billions of webpages, index these Internet marketing Orlando Resort’s golf courses documents (including text, images, A is projected to grow OrlandoFloridaResort.com videos, newspapers, blogs, and audio 15-20 percent through 2011, with files), accept millions of Web queries sponsored search advertising the dom- Sponsored search provides the rev- per day, and present billions of links inant model (www.idc.com/getdoc. enue base for major search engines per week. jsp?containerId=prUS21304208). In such as Google, Yahoo!, Microsoft Without sponsored search, it is sponsored search—also known as Live, and Ask, as well as many online doubtful that the major search engines paid search, keyword advertising, businesses that rely on traffic driven could finance anything close to their pay-per-click (PPC) advertising, and by PPC platforms. For example, more current infrastructures to provide search advertising—advertisers pay than 90 percent of the $21.8 billion these services. Keyword advertising search engines for traffic from the Google earned in 2008 came from is critical as a revenue source for the search engine to their websites via sponsored search (http://investor.
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