netmeg - 10:28 pm on Sep 4, 2012 (gmt 0)
Now I'm going to tell you why you don't see IBA in the search ads.
Because Google doesn't need to show them there.
Search ads are basically easy - I as an advertiser plug in a list of keywords and the amount I want to bid, and if all the other pieces align, when someone types one of my keywords into the Google search box, my ad appears. Easy peasy. If I know what I'm doing, my CTR is fairly high and these ads convert pretty well because I'm hitting someone with my ad exactly when they're looking for what I got.
Display ads are bid completely differently. There is no one-to-one keyword match. I'm not bidding on a match type to a list of keywords, I'm basically bidding on a theme. CTR on display ads tends to be WAY lower, because you're not necessarily showing your ad to someone at the exact moment they're looking for it, you're hoping it catches their eyeballs while they're browsing the web; quite possibly looking for something else entirely. It's a bit of a needle in a haystack. So I create my display campaign and I name my ad group and toss in just a handful of keywords to represent the 'theme' I'm going for, and I have to trust Google to figure out where to show the ads. Typically you get a lot lower CTR and conversion on Display until you run some campaigns, figure out which sites work for you, then you can isolate them out to their own campaign and bid more because the ROI is with those higher converting sites.
IBA is simply that last method on steroids. It's a way to try to get a better CTR out of what's already a low CTR proposition. If a site gets a 100 users in ten minutes, and one of them has done something previously to make Google think that he might be interested in what I have, they're gonna try to show my ad to that guy, because he's ever so slightly more likely to click and convert.
That's all there is to it. IBA ads don't show on Search because they're not as targeted as search, but they're more targeted than plain old Display.