The Google Online Marketing Challenge

It is perhaps the world's largest in-class competition, with over 8,000 students in the 2008 Google Online Marketing Challenge and over 10,000 students from 57 countries in the 2009 version. The Challenge gives graduate and undergraduate students hands-on experience in the fastest growing advertising medium. Keyword advertising is the critical revenue stream for major search engines such as Google and Yahoo,
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, and a major business model for the foreseeable future. Google earned almost $22 billion in 2008, and over 95% of this revenue came from their keyword advertising form, AdWords.
Usually in the right-hand column of Google search results, traditional AdWords have four lines of copy and no images. The headline contains a maximum of 25 characters, and the next three lines each contain a maximum of 35 characters. Table 1 shows two sample AdWords ads for the American Marketing Association, with identical copy except for the third line, which should appeal to scholars (left) or those seeking employment (right). 
The Challenge, a fun and exciting competition, helps students learn experientially, working in groups with real clients and spending real money. Google positions the Challenge as an academic exercise with problem-based learning, facilitated by Google rather than a Google promotion facilitated by academics. For example, students must submit two written reports in order to compete.
The Challenge benefits universities, businesses, students and academics, but targets academics. To that end, a panel of 15 academics in nine countries helps develop materials for students, instructors, and businesses, and ultimately choose regional and global winners. The Challenge website hosts student and instructor materials, as well as fun videos, Frequently Asked Questions and AdWords resources. Pedagogy, particularly experiential learning and problem-based learning, play a key role in the learning objectives.

To spur student and academic interest, Google sponsors three regional prizes and an overall prize. The 2009 regional winning student teams, and their professors, won an overnight trip to the Google headquarters in China, Ireland and the USA. The overall winner, and their professor, won a week's San Francisco holiday including a day at Google's nearby global headquarters, the Googleplex. The overall and regional wining students also won laptop computers.


Challenge Implementation

The Challenge follows the steps in Figure 1. After the instructor divides students into groups of 3 to 6 members, the groups recruit a client business. Based on their research of the business, its market and competitors, teams develop an AdWords campaign for the business. Google provides each team with US$200 AdWords credit to spend during a 3-week campaign. To accommodate class schedules across 6 continents, students can run their campaign for any 3 consecutive weeks from late January to late May.
Students spend their AdWords budget, bid for keywords, and adjust their campaigns based on monitoring near realtime reports generated by Google AdWords. These reports include metrics such as visitors' geographic locations, number of clicks on each ad, the number of times Google displayed the ad on a Web page, the subsequent click-through rate for each ad, and the cost per click for each ad. Students compete for ad placement and position with online advertisers around the world, as well as with student groups—locally, regionally, and globally.

How students manage their US$200 budget and 3-week campaign depends on the business and student team. For example, some businesses work with students to improve the website, whereas other businesses want no website recommendations, or have no idea how to change the website.  Businesses often take an active interest in the campaign.
Selecting the Challenge winners is innovative, drawing on one quantitative and two qualitative steps. First, a proprietary Google algorithm examines over 30 campaign factors across 5 broad areas: account structure, optimization techniques, account activity and reporting, performance and budget, and relevance. Google uses the algorithm to select the top 50 teams in each of 3 regions (Americas, Europe, and Asia-Pacific). Then in a qualitative step, Google AdWords specialists trim these 150 teams to 5 teams per region, or 15 teams. Finally, in the second qualitative step the Academic Panel chooses regional and global winners from these 15 teams based solely on two written reports. Panellists whose teams make the final 15 abstain from all judging.

Experiential learning drives the Challenge logistics and pedagogy, particularly the Pre-Campaign Strategy and Post-Campaign Summary. Most instructors assess their students on these reports. The Pre-Campaign Strategy includes a client overview and proposes an online advertising strategy with target audience settings, keyword examples, advertising copy, and projected success metrics. The Post- Campaign Summary incorporates an industry component with campaign results and client recommendations, and a learning component with student reflections on learning objectives, group dynamics, and client dynamics.