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ARTICLE · 22 JANUARY 2015

Searching For Low Risk? NAD Clarifies Rules For Paid Search

It appears to be search engine marketing month, first the FTC and now the NAD has also weighed in with a case of first impression over use of ad copy in paid search results.

United StatesMedia, Telecoms, IT, Entertainment

It appears to be search engine marketing month, first the FTC and now the NAD has also weighed in with a case of first impression over use of ad copy in paid search results. Like collecting postcards from our travels, we similarly have memories of NAD lessons in the online travel agency wars, including on sales pricing (click here for an early 2013 decision) and this adds to the set.

When searching for "flights from DC to Hawaii" (one of our personal favorites)?, companies bid for top placement in the sponsored search results. Favorable placement is based on not just the price the advertiser paid, but also the relevancy of the ad to the search. Ads that get more clicks have a higher relevancy rating. So in response to our query, we might see an ad for "Flights to Hawaii as low as $300. Sign us up!" Expedia challenged that CheapOAir was displaying the lowest price one could get to Hawaii from any airport not specifically from a DC airport.  NAD agreed that this could

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