Will the PayPerClick Model Hold Up as Click Prices Rise - PowerPoint PPT Presentation

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Will the PayPerClick Model Hold Up as Click Prices Rise

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... sales volume of over $80 billion / year, and 3 million real estate listings ... Specialization in the real estate vertical. A Quick Visual Definition of ... – PowerPoint PPT presentation

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Title: Will the PayPerClick Model Hold Up as Click Prices Rise


1
Will the Pay-Per-Click Model Hold Up as Click
Prices Rise?
  • Presented by
  • Avi Wilensky, CEO
  • Promediacorp.com

2
Who we are?
  • Manhattan-based SEM Firm
  • Clients includes the countrys largest private
    real estate brokerage firm Weichert Realtors,
    with annual sales volume of over 80 billion /
    year, and 3 million real estate listings
  • PPC experience since the Goto.com days in the
    late 1990s
  • Specialization in the real estate vertical

3
A Quick Visual Definition of
Inflation
4
Inflation
  • A general rise in the price level of goods and
    services
  • Occurs when demand increases relative to supply
  • In other words, too much money chasing too few
    goods

Keyword Inflation
  • The general rise in the price level of a keyword
    in a pay-per-click marketplace
  • Occurs when demand increases relative to supply
  • In other words, too much money chasing too few
    keywords

5
Why is keyword inflation occurring?
  • Many big-brand advertisers are poised to enter
    the marketplace
  • Advertisers are noticing that PPC marketing is
    more effective then other traditional forms of
    advertising
  • These advertisers have seemingly unlimited
    budgets to pour into pay-per-click campaigns
    and they do
  • They are not interested in CTR or conversions
  • All they care about are achieving the top
    positions and will spend great amounts of money
    to accomplish this.
  • According to the latest report from Click
    Forensics, click fraud rose more than 16 in Q4
    2007 that is an increase of more than 2 from Q4
    2006 and a 0.4 increase of Q3 2007.
  • Last March, Google went on record saying that
    click fraud is just 0.02 of clicks.

6
More and Bidders are Entering The Auction
Tel Aviv hotels
6
5
4
3
7
More ROI Blind Bidders Are Entering the Auction
6
Gaza Strip resorts

5
4
3
8
Potential Mergers May Limit Keyword Supply
Image source mashable.com
  • If Yahoo! Search Marketing and MSN AdCenter merge
    as one platform, keyword supply will likely
    decrease, forcing major price hikes.

9
Is PPC Threatened by PPA?
  • Pay Per Action (PPA) / CPA
  • PPA/CPA is a profit sharing affiliate model
  • Best for most advertisers since there is zero
    risk
  • The risk is taken upon by the publisher, since ad
    inventory is limited
  • Relies heavily on landing page and competency of
    advertisers websites ability to convert
  • PPC is the happy medium which distributes the
    risk amongst the publisher and advertiser

10
How Can We Minimize the Repercussions of Keyword
Inflation as the Advertiser?
  • If done right, PPC advertising is still a smart
    place to invest your marketing dollars.
  • Theres a reason why the AdWords program brings
    in more revenue than NBC, CBS, and ABC combined.
  • Forbes projects 8 billion in PPC revenue for
    2008.
  • PPC accounts for the majority of Google and
    Yahoos earnings

11
Avis Top 10 Tips to Fighting Keyword
Inflationand Staying Ahead of the Competition!
12
10
Buy Text Link Ads

Use Affiliate Code PROMEDIACORP
(Just Kidding )
13
9
  • Invest in the Shvantz (tail)

heads
tails
http//adwords.google.com/select/KeywordTool
14
8
  • Geo-Targeting Is Your Friend

Wall St.
15
7
  • Better optimize your landing page for
    conversions.
  • Heatmap analytics well give you insight where
    users are looking
  • Are page elements situated properly?
  • www.crazyegg.com

16
6
  • Dont Ignore Usability
  • 3 Great Resources
  • Dr. Jakob Nielsens www.UseIt.com
  • Kim Krause-Bergs www.usabilityeffect.com
  • US Government Guide to Usability
    www.usability.gov

17
5
  • Write Kick-Ass Creatives

  • Should contain keyword in title, ad, in display
    URL, a call to action, and sense or urgency (buy
    now, quantities limited)

Keyword once
Call to action
Keyword 2X
Keyword 3X
18
4
  • Diversification Yahoo, MSN, Ask and other search
    engines still exist!

19
3
  • Target Your Ads to Your Demographic

What is demographic bidding? Demographic bidding
is a way to help your ad reach audiences of a
certain age or gender. If you want your ads to be
seen by women aged 18-24, or people over 55,
demographic bidding can help. Demographic
bidding is a new feature which is now available
to a limited number of AdWords users.
Adwords Demographic Targeting is now in
BETA!!! THIS IS A MAJOR STEP FORWARD!
20
2
  • Experiment with Dayparting

21
1
  • Know That Its OK To Not Be in the 1 Spot!
  • Avoid getting caught up in a bidding war

Thank you!
View the Presentation at Promediacorp.com/sphinnco
n
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