Microsoft to turn search ads into display ads - Research - BizReport

Microsoft to turn search ads into display ads - Research - BizReport: "Microsoft to turn search ads into display ads
Marketers wondering if paid search ads are 'inventive' enough will likely be intrigued by a new offering that Microsoft is beginning to test. The new platform is said to turn standard search ads into full-blown display ads.
by Kristina Knight
Here is how it works: when a user hovers the mouse over a paid search ad, the ad explodes into a large display ad. By offering more information from the 'hover' advertisers will basically gets two ads for the price of one, while users gain more information which will help them make purchase decisions. According to some early analysts, this new platform will increase click-throughs from search ads.
In 2006, US companies spent roughly $6 billion on paid search ads, about 2% of the total US ad spend. In the UK, paid search accounts for roughly 6% of the total ad spend. According to a report from Jupiter Research, the US search spend in will increase between 11% and 25% this year because of the increase in keyword prices.
However, click-through rates on ads have dropped in recent months. With the drop, marketers have been searching for the answer to increasing the ROI from paid search campaigns. Offering more information to users with a single ad would seem to answer this question. Instead of a simple ad on a search results page, the larger display ad would include product details, creating a kind of store-front for the user.
Will this ad type catch on? That remains to be seen. But the possibilities are intriguing."