Search advertising has been a very successful business within search engine marketing. But can it be improved moving forward? Nick Fox, the Business Product Management Director of Google AdWords, thinks it can and extends three challenges to change the future of the search advertising business. They are:
1. Can we go beyond keywords?
2. Can we go beyond text ads?
3. Can we go beyond cost-per-click (CPC)?
Fox suggests that instead of “guessing” on keywords, matching the advertiser’s actual business objectives directly with the action the users are trying to do. For text ads, why not change the ad format to include items such as maps, video, directions, and more since users are accustomed to those enhancements in their searches.
To go beyond cost-per-click, Fox advocates the idea of cost-per-acquisition or pay-per-conversion systems. Advertisers do not simply want visitors to their site, but instead, want to see business results such as sales and relationships. Google’s Conversion Optimizer is one step in moving toward this direction.
While keywords, text ads, and cost-per-click have all worked well in the past, there is always room to boost the experience for both the advertisers and the users.
What direction would you like to see search advertising take in the future?

I wish I could have been in CA for this show.
I’m always wondering why Google talks about how “specific is better” encouraging longer-tail approaches with precision landing pages…. but as soon as you try to execute a moderately long-tail strategy with precision landing pages, etc…you’re likely to find your ads marked “low keyword volume” and disabled.
So this recommendation works, at best, at the category level of a website and not for specific products, geographic targets and exact match search phrases.
Trouble with guessing is it can be become annoying. I am not sure how it can progress from here.
Absolutely, essential information. Thank you so much for putting up this video. This will give webmasters and web marketers and idea of what we need to change in our business structure going forward.
Those that can adapt will be successful, while those that are stuck in the CPC and search ad mode will get left behind.
Like the previous commenter, I wish I could have attended this conference also. I feel so much smarter just listening to that guy talk.
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While keywords, text ads, and cost-per-click have all worked well in the past, there is always room to boost the experience for both the advertisers and the users.