Economics: Today and Tomorrow © 2008

"Just Google It"

Introduction
According to the Interactive Advertising Bureau and PriceWaterhouseCoopers, during the first quarter of 2007 Internet advertising revenues soared to $4.9 billion—a 26 percent increase over the first quarter of 2006 at $3.8 billion. Thanks to the intuitiveness of search engines like Google, retailers can now reach millions of potential customers online, getting more bang for their advertising buck. The popular phrase “Google It” is music to an advertising exec’s ears, knowing that at any given moment someone somewhere is typing a key word into the popular algorithm. What comes next is advertising magic. Visit the Google AdWords Web site to learn how keywords can lead to new customers and bigger profits for even the smallest business.

Destination Title: Google AdWords

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Directions
Start at the “Google AdWords” Web site.

• Scroll down to the “Learn about AdWords” section of the page.
• Read through “How it Works” and “Why it Works”
• Next, click on “Success Stories” and select “more” to learn about American Meadows
• Once you’ve read through the success story, click on “AdWords Advantages” and “Program Comparison”

1			According to the Web site, what makes Google AdWords a great choice for businesses with limited advertising revenue? (There is no minimum time or spending commitment; instead of paying for the ad, you pay when people click on your link to learn about your business or product; you can set a daily budget.)
2			What percentage of American Meadows’ site visitors come through Google’s AdWords? (35 percent)
3			According to Ray Allen, the company’s advertising executive, why is Google’s AdWords ideal for promoting the retailer’s special sales and events? (Allen likes the flexibility Google offers, allowing him to change his AdWords in real time to promote sales and special events)
4			Study the Program Comparison chart. What campaign management advantage do online advertisers get with Google’s AdWords? (Unlike traditional CPC’s, Google allows multiple keywords per ad; Google tracks your clicks to help you choose the right keywords.)
5			Imagine you are an advertising executive for a popular resort. It’s your job to convince the Board to put more money into online advertising—and less money into traditional print advertising—at the next meeting. Write a short proposal advocating an online approach like Google’s AdWords. (answers will vary)