Search engines are creating stock markets? Yes and the reason for this is that there are auctions related to keywords. They’re sold for ad space to those who make the highest bid, and literally form a stock market in the process.
The type of the keyword that’s being used decides its robustness and also its value. There are certain words for which advertisers would pay more since they are more competitive. The return on those keywords is also on the higher side.
Similarly, it’s possible to assign cost to keywords. Some keywords amount for few cents while others are very valuable because of their need in the status quo.
As new businesses look to bolster their online visibility, it’s not easy for them to utilize the search engine stock market without having the means of accessing it. For example, Google usually accepts credit cards for most of its payments and even Google Wallet is linked with credit cards. However, it’s quite easy for new businesses to access the payment form with so many debit cards and business credit cards for new business available.
New businesses may also find it hard to keep track of their online and offline expenditures. Expense accounts and trading journals can get messy if they’re financing online and offline stock investment both from the same bank account. It would be much easier if they kept a separate account for online expenditures, which wouldn’t be difficult as there are many top savings accounts and current accounts available to choose from.
One of the main differences between the conventional markets and the Google stock market is about the commodity. In the real market, the stock value is independent of the portfolio of the buyer. Whoever buys a certain amount of share, irrespective of their status, the worth of the share is the same.
On the other hand, the value of the keyword is dependent on the usage. The success of many online ventures has been on the value they have been able to extract from the keywords.
Online businesses are directly associated with this stock market and bidding on them is very much similar to the buying of stocks or commodities. The keywords that are generated directly influence the spending habits of people. According to the Consumer Expenditure Survey from the Bureau of Labor Statistics last year, more than 60% of buying habits is influenced by search engines.
As far as the working of the market based upon the click through rate (also known as CTR) goes, if the CTR is high, the value of the keyword would be high as well.
In the stock market, it would be similar to buying a few shares of high value and then perform a personal stock split each time for a new winner.
This idea can also be explained in the form of a business strategy as well. An online business has a certain product or service which it’s selling. The keyword design would be one way or the other related to the item.
The product or service would have a certain cost, whose value can be increased using this model. If the click through rate rises because of an attention getting ad, two objectives are achieved.
Firstly, the quality score (with reference to search engine performance) would increase. Secondly, more traffic would result on the page, leading to rapid conversion rates.
So the value is very much dependent on the quality of the ad. Like there are variable factors when it comes to normal stocks, there are similar considerations when it comes to keyword stocks. The CTR’s value would increase when your target market is clicking, and not by the clicks at any cost rate as that would dilute the value.
This approach has been used by a number of online ventures to increase their sales and also to fare good on the search engine stock market at the end of the day.
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