Title: Will the PayPerClick Model Hold Up as Click Prices Rise
1Will the Pay-Per-Click Model Hold Up as Click
Prices Rise?
- Presented by
- Avi Wilensky, CEO
- Promediacorp.com
2Who 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
3A Quick Visual Definition of
Inflation
4Inflation
- 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
5Why 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.
6More and Bidders are Entering The Auction
Tel Aviv hotels
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7More ROI Blind Bidders Are Entering the Auction
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Gaza Strip resorts
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8Potential 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.
9Is 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
10How 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
11Avis Top 10 Tips to Fighting Keyword
Inflationand Staying Ahead of the Competition!
1210
Buy Text Link Ads
Use Affiliate Code PROMEDIACORP
(Just Kidding )
139
- Invest in the Shvantz (tail)
heads
tails
http//adwords.google.com/select/KeywordTool
148
- Geo-Targeting Is Your Friend
Wall St.
157
- 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
166
- 3 Great Resources
- Dr. Jakob Nielsens www.UseIt.com
- Kim Krause-Bergs www.usabilityeffect.com
- US Government Guide to Usability
www.usability.gov
175
- 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
184
- Diversification Yahoo, MSN, Ask and other search
engines still exist!
193
- 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!
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- Experiment with Dayparting
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- 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
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