Unit 2: Search Engine Marketing
Search Engine and Performance Marketing notes · PTU syllabus (MBA 972-26)
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Unit summary
Search engine marketing buys visibility at the moment of intent. This unit covers the Google Ads ecosystem and campaign structure, PPC advertising models, bidding strategies and ad ranking, search, display, shopping and video ads, remarketing and retargeting, programmatic advertising, audience and behavioural targeting, and ad quality score.
After this unit you can
- Explain the Google Ads ecosystem and campaign structure
- Explain PPC models, bidding strategies, Ad Rank and quality score
- Explain search, display, shopping, video and remarketing campaigns
- Explain programmatic advertising and audience targeting
PTU syllabus topics
- Google Ads ecosystem and campaign structure
- PPC advertising models
- bidding strategies and ad ranking
- search/display/shopping/video ads
- remarketing and retargeting
- programmatic advertising
- audience and behavioural targeting
- ad quality score
Ad Rank
Bid × quality factors (expected CTR, ad relevance, landing page) and more
Quality Score
1–10 rating of ad, keyword and page
Actual CPC (classic)
Next Ad Rank below / your Quality Score + ₹0.01 (approx.)
Remarketing
Show ads to past visitors
Topic 1
The Google Ads ecosystem and campaign structure
Campaigns
Budget, network, location, language, bidding
Ad groups
Themed sets of keywords or audiences
Keywords
With match types — broad, phrase, exact; negative keywords
Ads
Responsive search ads with headlines and descriptions
Assets (extensions)
Sitelinks, callouts, call, location, structured snippets
- Networks: Search, Display, YouTube, Shopping, Discover, Gmail, Maps; Performance Max campaigns use AI across all of them.
- Microsoft Advertising (Bing) and marketplace ads (Amazon, Flipkart) are other SEM platforms.
Topic 2
PPC advertising models
CPC (cost per click)
Each click
Traffic and conversions
CPM (cost per thousand impressions)
Every 1,000 impressions
Awareness
CPA (cost per acquisition)
Each conversion
Performance goals
CPV (cost per view)
Each video view
Video campaigns
Topic 3
Bidding strategies and ad ranking
- Manual CPC: advertiser sets maximum bids per keyword.
- Smart (automated) bidding: Maximise clicks, Maximise conversions, Target CPA, Target ROAS, Maximise conversion value — use machine learning on auction-time signals.
- Ad auction: runs for every search; Ad Rank decides position and eligibility.
Ad Rank
Maximum bid × quality score, plus impact of assets and context
Actual CPC (classic second-price)
Ad Rank of the advertiser below ÷ your quality score + ₹0.01
Example
Advertiser A bids ₹20 with quality score 8 (Ad Rank 160); B bids ₹30 with quality score 4 (120). A ranks higher despite the lower bid and pays about 120 ÷ 8 + 0.01 ≈ ₹15.01.
Topic 4
Ad quality score
- Quality score (1–10) is Google's estimate of ad quality at keyword level, based on expected click-through rate, ad relevance and landing page experience.
- Improve it: tightly themed ad groups, keywords in ad text, compelling copy, relevant fast landing pages, negative keywords.
- Benefits: higher positions at lower cost per click.
Topic 5
Search, display, shopping and video ads
| Campaign type | Where ads appear | Typical goal |
|---|---|---|
| Search | Google search results | Capture demand at intent |
| Display | Websites and apps in the Google Display Network | Awareness and remarketing |
| Shopping | Product listings with image and price (via Merchant Center) | E-commerce sales |
| Video | YouTube and partner sites (skippable, bumper, in-feed) | Awareness, consideration |
| App | Search, Play, YouTube, Display | App installs and in-app actions |
Topic 6
Remarketing and retargeting
- Remarketing: showing ads to people who previously visited the site or app, used the app, or are on the customer list.
- Types: standard (display), dynamic (shows products viewed), search remarketing (RLSA), video remarketing, customer-list (Customer Match).
- Best practices: segment by behaviour (cart abandoners vs browsers), frequency caps, exclude converters, fresh creatives.
Topic 7
Programmatic advertising
Programmatic advertising is the automated buying and selling of digital ad impressions using software and real-time data.
- 1User opens a page
- 2Publisher's SSP offers the impression to an ad exchange
- 3DSPs evaluate user data and bid within milliseconds
- 4Highest bidder's ad is served
- 5Impression and results are tracked
- Players: demand-side platforms (DSP — Google DV360, The Trade Desk), supply-side platforms (SSP), ad exchanges, data management platforms.
- Deal types: open auction, private marketplace, preferred deals, programmatic guaranteed.
- Issues: brand safety, ad fraud, viewability, transparency of fees.
Topic 8
Audience and behavioural targeting
Demographic
Age, gender, parental status, income
Affinity
Long-term interests and lifestyles
In-market
People actively researching a category
Custom segments
Based on keywords, URLs, apps
Your data
Remarketing and Customer Match lists
Similar or lookalike
Users resembling existing customers
Contextual
Content of the page or video
Location and device
Geo, radius, device type, time of day
- Privacy shift: reduced third-party cookies push towards first-party data, contextual targeting and modelled conversions.
Key terms
- Ad group
- Set of ads sharing keywords or targeting
- Negative keyword
- Term that prevents ads from showing
- Ad Rank
- Score deciding ad position in the auction
- Quality score
- Keyword-level rating of ad and landing page quality
- DSP
- Demand-side platform for buying ad impressions
Quick revision
- Account → campaigns → ad groups → keywords → ads and assets; networks; Performance Max.
- CPC, CPM, CPA, CPV.
- Manual and smart bidding; Ad Rank; actual CPC.
- Quality score components; campaign types; remarketing types.
- Programmatic: RTB, DSP, SSP, exchanges; targeting options.
Important exam questions
Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).
Short-answer questions
- Q1.Name the levels of a Google Ads account.
- Q2.Distinguish phrase and exact match keywords.
- Q3.What are the components of quality score?
- Q4.What is Target ROAS bidding?
- Q5.What is dynamic remarketing?
- Q6.What is a demand-side platform?
Long-answer questions
- Q1.Explain the Google Ads ecosystem and campaign structure.
- Q2.Explain bidding strategies, Ad Rank and quality score.
- Q3.Discuss search, display, shopping and video campaigns and remarketing.
- Q4.Explain programmatic advertising and audience targeting.
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