Googlenomics

The internet has spawned, at an alarming rate, a bevvy of new words, among them the verb (and noun) google. "I'll google it." "I was googling about that and found..."

It's not too shocking that we are not yahooing things. Google is known for its radical, alternative avenues to success, thereby the company has captivated the general public while at the same time it has redefined media sales strategies and the world of advertising. This is where you get Googlenomics - economics Google-style.

The June 2009 issue of Wired dives into "Googlenomics Explained: The Secret Formula That Made Advertising Smart" by Steven Levy and looks at the auction theory applied to Google AdWords. Advertisers bid on ad space. That's right. There is no guaranteed "price" to ensure the business plan, so Google looks at more than just the dollar amount on the bid. There is a lot of data and quality assessment behind each ad sale.

"The bids themselves are only a part of what ultimately determines the auction winners. The other major determinant is something called the quality score. This metric strives to ensure that the ads Google shows on its results page are true, high-caliber matches for what users are querying..."

Quality score is determined by:
- An ad's relevance to Keywords
- Quality of the landing page to which an ad connects
- Percentage of clicks an ad receives when it appears in search results

To break this down, it is important to do a relevant keyword analysis of a company. This is not a guessing game; there are real tools and analytics and a lot of constant analysis behind the most effective keyword strategies.

Then, you need a quality Web site - not the most elaborate or most tricked out Web site. You need a site that works in all Web browsers, talks about a product relevant to the ad, provides code that boosts SEO rankings and is an actively updated site.

Last, you need a compelling ad that inspires click-thrus. Design. Content. Appeal.

Googlenomics is not a random theory. It is based on providing quality and relevance, and it is based on the data collected by searches, visits and consumer action. "Algorithmic Spelunking" is how the article describes it.

This post just touches on the surface of things, so Read The Entire Article.