I am not able to make a direct connection between Internet paid advertising and stock prices, interest rates, affordable mortgages, and the cost of oil. That being said, people have seemed to notice the cost of their paid clicks going up over the past few weeks. Maybe just a coincidence but just when you thought the economy couldn’t get any worse, the pay per click industry is seeming to offer no relief.

What is the reason for click prices rising? Well, I wish I had a good reason for you. The only person who can answer this would be a representative from Google, MSN, and Yahoo, and we know they won’t tell you the truth. They will blame this on demand, but I suspect this is a calculated decision to increase earnings. Ultimately the advertising engines have all the control.

Is there legitimate reason to be concerned about the well-being of your paid ad campaigns? Yes and No. I have seen these types of roller coasters fluctuations before. Some months you can purchase a term for a buck, then the next month you need to big closer to 2. What does concern me is that according to the article below, representatives are taking note and requesting the advertisers bid more per keyword. To me that implies that this may be more than market demand, this might be a calculated move by the search engines. If that is the case, how high is too high to pay for advertising online? When do the search engines realize they are losing money and advertisers? Or will people always pay top dollar to be on page 1? http://www.webpronews.com/topnews/2008/01/25/adcenter-customers-becoming-disgruntled

There is one good thing about raising the cost of clicks, and that is that the advertisers that can stick it out, will be the biggest and probably the most profitable. That should mean that the paid ads you see should be able to offer you a quality service. Stay tuned, we will always keep you updated on industry changes.

Bookmark It

Hide Sites

• The Cost of Clicks Are Rising… But Don’t Complain
• Do Web Surfers Pay Attention to Pay Per Click Advertising?
• Yahoo says “No Thanks” to Microsoft Bid
• Keep Google Happy In 2008 and Beyond
• Adwords Updates Display URL Policy (About Time!)

Trackback URI | Comments RSS