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Online Marketing in Czech Republic: Seznam.cz and Sklik

effective_world

effective world    23/05/14

International Online Marketing, Search Engine Advertising (SEA), SEO, Web Analytics

 

With a 37% share of the search engine market in the Czech Republic, Seznam.cz, along with its Sklik online advertising platform, has proven to be a worthy opponent to the market leader Google.

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Founded in 1996, Seznam (Czech for inventory) was the first home-grown search engine in the Czech Republic. Nowadays, it holds the second largest share of the search engine market after Google, and offers a highly-optimized online advertising platform in Sklik. Advertising is displayed on Seznam’s search results page, as well as on websites belonging to its partner network, which together account for a large portion of Czech internet traffic.

Sklik Networks

Sklik ads appear in two distinct advertising networks – the search network and the content network. They differ in their approach to ad campaign creation and their way of displaying ads, as well as in their target audiences.

 

Search Network

 

Ads appear on search result pages of the second most utilized search engine in the Czech Republic - Seznam.cz and on those of various other search services such as Zbozi.cz, Sbazar.cz, Obrazky.cz or the Seznam encyclopedia.

 

 

Content Network

 

Seznam’s content network is composed of some of the most frequently visited Czech websites and other partner websites numbering in the thousands, which all display context-aware advertising. The content network grows by several hundred websites every month.
Ads are displayed based on the content of a given page, which is determined by analyzing its general subject matter and the appearance of particular keywords. By definition, context advertising is more generalized and therefore suitable for targeting a broader spectrum of potential customers.

 

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Ad Ranking

 

On Sklik, an ad’s position on a page is governed by the auction principle – chosen cost per click (or cost per 1000 impressions), historical click through rates, ad relevancy to the landing page, and several others in an unknown algorithm. As a result, an ad can appear above its competitors even though the chosen maximum cost per click is lower. Creating high quality ads is therefore paramount. It is important to remember that just as with natural search results, a higher placement of an ad tends to have a positive impact on the number of potential customers reached and in turn on the success of the advertising campaign.

 

Ad Targeting

 

One of the main advantages of Search Engine Advertising platforms, such as Sklik, is the possibility of precise customer targeting via specific keywords and custom ad texts. The advertiser is able to directly target those users that are searching for or interested in the product or solution in question. Additionally, on the Sklik platform advertisers have the ability to further narrow down the target market via geographical and time of day targeting.

 

Payment for Ad Clicks

 

When paying for clicks, advertisers are charged only when a user clicks on one of their ads. Essentially, advertisers pay for traffic on their website directly generated by their Sklik ads. Payment for ad clicks is available for both the search network and the content network.
The selected maximum cost per click (CPC) represents the amount an advertiser is willing to pay for a click on their ad. This amount is chosen by the advertiser and can be changed at any time on the Sklik platform. CPC influences the position (rank) at which the ad appears on a page.
The real cost per click can, however, be lower than the selected maximum CPC. Sklik only charges the amount necessary to retain the ad’s position.

 

Payment Per 1000 Impressions

 

When the goal of an advertising campaign is to increase brand or product awareness, it is recommended to utilize Sklik’s cost per thousand (CPT) payment model, preferably in combination with display ads (e.g. images, banners etc.). CPT is, however, only available for the content network.
Similarly to CPC, the cost per 1000 impressions (CPT) is solely chosen by the advertiser and can be changed at any time. The selected amount governs whether the ad is displayed on a particular page belonging to the Sklik content network or not. In the case of text ads, the maximum CPT also affects the ad’s final ranking.

 

Daily Budget

 

The daily advertising spent can be controlled by setting the campaign’s daily budget, which prevents overspending. Among other factors, the potential amount of clicks or ads displayed depends on the daily budget and the real CPC.

 

Sklik Credits

 

Advertising on Sklik is paid for by credits previously acquired on Seznam’s Penezenka (wallet) platform via international money transfer, credit card, and several other methods specific to the Czech Republic.

 

Sklik Statistics

 

Via its platform, Sklik offers a wide range of statistical data regarding the advertiser’s campaign. In addition to all elementary performance data, the statistical overview offers information on conversions, transactions, pages displaying ads, and more.
With its Sklik online advertising platform, Seznam.cz offers a powerful alternative to Google AdWords. Seznam’s extensive content network, accounting for a large share of the Czech internet traffic, is a particularly valuable resource for advertisers looking to extend their online reach in the Czech Republic. Don’t hesitate to contact us, if you are interested in creating or expanding your online advertising activities in the Czech market using Sklik in addition to or in tandem with Google AdWords.