Investment Management Certificate (IMC) Practice Exam

Which term is used to define the method of placing ads on web pages showing search engine results?

1. Display advertising

2. Pay-per-click advertising

3. Search engine advertising

4. Programmatic advertising

The correct answer is: Search engine advertising

The term "Search engine advertising" specifically refers to the practice of placing advertisements on web pages that display search engine results. This method allows advertisers to promote their products or services directly in the context of searches that are relevant to their offerings. Typically, these ads appear at the top or on the side of the search results page and are often labeled as "sponsored" or "ads." Search engine advertising typically uses a bidding system where advertisers bid for keywords. When users search for these keywords, the ads are displayed, and businesses are charged when users click on their ads (this aligns closely with pay-per-click advertising, but it is the broader category of search engine advertising that encompasses this). This targeted approach can lead to higher conversion rates since the ads are shown to users actively seeking information related to the advertised products or services. Other terms like display advertising, while relevant to online advertising, don’t specifically denote ads linked to search results. Display advertising generally refers to visual banners that appear on various websites but not necessarily in response to user queries. Programmatic advertising refers to the automated buying and selling of ad space, which can include but is not limited to search engine advertising. Thus, the specificity of the term "search engine advertising" correctly aligns with the described