New Technology Could Boost Click-Throughs For Search Ads

Advertisers may soon have a new tool to boost click-throughs from search ads, after the announcement that Microsoft has started testing a new platform which turns standard search ads into full-blown display ads.

The new technology means that when a user hovers the cursor over a paid search ad, the ad expands into a large display ad. By offering more information from the “hover”, advertisers will essentially get two ads for the price of one, while users gain more information which will help them make purchase decisions.

In 2006, US companies spent roughly $6 billion on paid search ads, about 2% of the total US ad spend. In the UK, paid search accounts for roughly 6% of the total ad spend. According to a report from Jupiter Research, the US search spend will increase between 11% and 25% this year because of the increase in keyword prices.

However, click-through rates on ads have dropped in recent months. With the drop, marketers have been searching for the answer to increasing the ROI from paid search campaigns.

Offering more information to users with a single ad would seem to answer this question. Instead of a simple ad on a search results page, the larger display ad would include product details for example.

Microsoft: 0870 60 10 100 www.microsoft.com/uk