As we all know, the economy isn’t as strong as we would like. The challenges are stiff, but companies who take advantage of the flexibility of online adverting can still reap big rewards.  Most people start their search for goods and services online, and companies advertising budgets are still rising in the main search engines.  Google reported a 28% increase in online ad revenue in the third quarter, while Microsoft announced an increase of 15%, and Yahoo came in with a modest 1.2% boost.

Given these figures, its obvious advertisers recognize that search is a strong channel to attract and retain customers given a troubled economy.  But spending money online is not enough.  People are shopping more aggressively and will take the extra time to do their competitive analysis before they make a buying decision.  Because of this customer behavior, it is very important to increase your conversion rates.  More consumers shopping multiple offers can mean more traffic to your site, but also more clicks on your ads. If these clicks do not turn into conversions, then your return on ad spend (ROAS) is weakened.

Take advantage of the flexibility that online advertising allows and get creative with your message.  It would be very expensive to create 5 different TV commercials or 5 separate radio spots to communicate your message to potential customers.  However, the cost to accomplish this with a search marketing campaign is minimal compared to traditional marketing channels.  You have the ability to change ad copy every day, or every hour.  You have the flexibility to rotate different messages in your Pay-per-Click (PPC) campaigns to test which works best.  You can get creative with special offers on Tuesdays and Thursdays, 15% off for example, then turn around and create a new offer on Sunday (free shipping on all orders over $50).  Online ad spending is up but that doesn’t ensure customer acquisition or retention.  You must convert that traffic for the campaign to be a success.  Be flexible, get creative and increase the chances that your message is the one that convinces a searcher that they should buy from you!

Yahoo’s fate has been a hot topic of discussion for most of 2008. Earlier this year, there was talk about Microsoft acquiring Yahoo for $45 billion. On June 12th, Google announced an advertising agreement that gave Yahoo the option of using Google to provide ads on its network of websites in the U.S. and Canada.  However, on November 5th, it was announced that Google decided to end the agreement with Yahoo Search, in order to avoid a challenge from the U.S Justice Department.

David Drummond, Senior Vice President and Chief Legal Officer at Google, said in the Google blog, “After four months of review, including discussions of various possible changes to the agreement, it’s clear that government regulators and some advertisers continue to have concerns about the agreement. Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners. That wouldn’t have been in the long term interests of Google or our users, so we have decided to end the agreement. Google plans on staying focused on what they do best: creating useful products for our users and partners.”

The partnership between Google and Yahoo was originally discussed to prevent Microsoft from purchasing Yahoo. The acquisition of Yahoo by Microsoft would have proposed a more serious competitor to Google.  To avoid this acquisition, Google’s management took a risk by agreeing to the Yahoo partnership, knowing the merger would intensify the government’s scrutiny of Google’s dominance.  Many industry professionals feel that Google already has too much power, and it doesn’t seem to be slowing down anytime soon. According to a recent article in Ad Age, Google’s search-query share hit 63% in August. 

Now that Google declined the Yahoo search deal, many still believe Microsoft will make another attempt to purchase Yahoo’s search engine, especially now that it can be bought for much less then the originally proposed $45 billion.  Another theory is that Yahoo will join forces with a combination of AOL, Ask.com, and News Corp. Most marketers want to see healthy competition in the search engine space. Healthy competition results in lower prices and a more even playing ground.  By joining forces with any of the above mentioned, Yahoo could become the second biggest player in the search engine space.

Since I began working in search engine marketing, I have learned the basic rules of writing effective ad copy that adheres to search engine specifications.  While each search engine has their own guidelines, the premises are the same.  One important question still remains; how can you get as much information across to a searcher within the specific ad character limitations, but yet, still be fresh and creative?

A few weeks ago, I came across this issue while developing ads for a client.  I was stumped as far as the verbiage I could use in the ad copy, while still giving the ad a fresh look and feel.  Here are some methods I used to not only inspire me to write enticing ads, but to also differentiate my client among their competitors. 

I begin by conducting some research on my client’s industry; browsed their website and familiarized myself with industry terms.  If you happen to come across terms that are foreign to you, Wikipedia is a great resource that will put terms into a context that’s easy to understand.  This preliminary should research aide you in writing ad copy.

When writing the ad copy, I tried to select words that will evoke a sensory experience about the client’s business, product or service; such as ‘experienced’, ‘trusted’ or ‘knowledgeable.’  These types of words are important to searchers, as they want to conduct business with those they feel they can trust and who not only understand the product or service they are selling, but the industry as a whole.  To keep ad text exciting, try using a thesaurus to inspire creativity; sometimes it can take the ad to a higher level of professionalism.

Lastly, when I write my ads, I include a call to action whenever possible.  A strong call to action will not only set you apart from others, but also will make your ads more appealing to searchers.

It’s important to remember that you only a few have moments to capture the searchers attention.  Your ads don’t need to be elaborate; usually simple is better.  Be concise, creative and honest about your products and services and the ads will virtually write themselves.