Will the Pay-Per-Click Model Hold Up as Click

Prices Rise?

Presented by:Avi Wilensky, CEOPromediacorp.com

Who we are?

Manhattan-based SEM Firm Clients includes the country’s 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 1990’s

Specialization in the real estate vertical

A Quick Visual Definition of Inflation:

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 goodsKeyword 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

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.

More $ and Bidders are Entering The Auction

$3$4

$5

$6“Tel Aviv hotels”

More “ROI Blind” Bidders Are Entering the Auction

$3 $4

$5

$6“Gaza Strip resorts”

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.

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’ website’s ability to convert

PPC is the happy medium which distributes the risk amongst the publisher and advertiser

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.

There’s 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 Yahoo’s earnings

Avi’s Top 10 Tips to Fighting Keyword

Inflationand Staying Ahead of

the Competition!

Use Affiliate Code: PROMEDIACORP

(Just Kidding )

#10

Buy Text Link Ads

#9

Invest in the “Shvantz” (tail)

http://adwords.google.com/select/KeywordTool

heads

tails

#8

Geo-Targeting Is Your Friend

Wall St.

#7Better optimize your landing page for conversions.

•Heatmap analytics well give you insight where users are looking•Are page elements situated properly?•www.crazyegg.com

#6

Don’t Ignore Usability

3 Great Resources:

•Dr. Jakob Nielsen’s www.UseIt.com•Kim Krause-Berg’s www.usabilityeffect.com •US Government Guide to Usability – www.usability.gov

#5Write 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

Keyword 2X

Keyword 3X

Call to action

#4Diversification: Yahoo, MSN, Ask and other search

engines still exist!

#3Target 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!

#2

Experiment with Dayparting

#1Know That It’s OK To Not Be in the #1 Spot!

Avoid getting caught up in a bidding war

View the Presentation at Promediacorp.com/sphinncon

Thank you!