PPC Trends 2009: Lower Costs and Better Conversions
This blog entry was posted on May 20, 2009.
With a new report out now, there may not be a better time to start a PPC campaign.
How has our slow economic environment impacted pay-per-click (PPC) advertising? There are more impressions with more ads being showed to searchers. There is an increase in click thru rates. Advertisers have reduced their spending per click and have improved their conversion rates. This is all detailed in a report by eFrontier that compares their client data and compares Q1 2008 with Q1 2009.
Search engines have responded to our sluggish economy by reducing or removing minimum bids. Impression volume has surged across all search engines. This shows consumers are using search engines to buy products and to research products or companies.
Advertisers have increased their ROI by 10% Between Q4 2008 and Q1 2009 while spending 3.3% less. This shows a trend toward efficiency which comes from spending less per click and focusing on improving conversion rates. This has been done thru by improving ad / landing page relevance and landing page design.
How are the search engines faring? When comparing 4Q 2008 with 1Q 2009, Google saw a 1.2% increase in market share while Yahoo Search and Microsoft Live Search showed a Q/Q decrease of 0.7% and 0.5% respectively.
Cost Per Click refers to the amount of money an advertiser pays the search engines and other Internet publishers for a single click on its advertisement to brings a visitor to its Web site. CPCs are down across the board by 19% for Q1 2009 compared to the prior year.
Buying has shifted to lower ticket items. The average order value has declined 5% from one year ago according to the Rimm-Kaufman Group.
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Related posts:
- Plan For Success Within Your 2009 Budget
- New Year's Resolutions for Businesses in 2009
- PPC is Quicker, but Organic Traffic is Better
- The Most Important Thing I Learned From SearchFest 2009
- How to Improve eCommerce Conversions
Filed under: Internet Marketing,Pay per Click
This entry was posted on Wednesday, May 20th, 2009 at 2:47 am and is filed under Internet Marketing, Pay per Click. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.1 Comment
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Comment by Clarence Horsburgh — September 20, 2010 @ 9:24 pm