Three important truths in online search and advertising

MANILA, Philippines – In the video documentary The Science of Search and The Future of Online Advertising, Paul Barron, Chief Financial Officer of HTP Company emphasizes the relevance of Google’s role in today’s online advertising landscape.

“Google is probably the most successful business in the history of mankind because they essentially took advertising, which is historically a reactive business,” says Barron. “Google says ‘No, no. We will do pro-active advertising and will help client find product they are looking for.’”

In traditional advertising, creating new copies are costly and time-consuming. It was generally one way and although it had insurmountable reach, it had broad targeting.

On the other hand, digital advertising these days allows clients, agencies, and publishers to target specific audience characteristics. Content could now be crafted, adjusted, and revised based on little nuances in an individual’s behavior and preference.

In recent years, Google, which currently dominates the mobile advertising shares by about 52%, has gotten smarter in providing laser-targeted ads to advertisers or just plain evaluating content for its search engine.

“Google can actually read text as if it were a human being,” says Tony Durso, HTP’s Vice President of Operations. “It can understand if the sentence does not make grammatical sense. For instance, if it’s just a keyword plus ‘and,’ ‘the,’ ‘is,’ or keyword and something else, it will give the text no authority at all.”

The rise of mobile internet adds another dimension to online advertising. On top of veritable online access wherever there is WiFi connection or mobile signal, more and more people are using geo-location apps like Foursquare and Facebook Places.

“What is true in marketing, and we have known that since search engine came on, is the impact of marketing is stronger the closer you get to the purchase location,” says Dominique Hanssens, Bud Knapp Professor of Marketing.

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