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  1. #1
    What's the word? Rhia7's Avatar
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    Will PPC Take a Nose Dive? Or will it remain a sure bet?
    Will the PPC method last forever as the gateway to profits?
    What could save/perfect PPC?

    Rich Ord, CEO of iEntry, Inc., has an interesting article entitled Pay Per Click Party Over?

    Ord provides commentary on Blogger Steve Rubel's 5 reasons why Pay Per Click might not last as a major way to make money online:
    1. Clutter and "ad blindness"
    2. Declining Relevance of Traffic/Transition to Cost Per Action
    3. Rising Costs
    4. Content mixed with ads or solely created from ads as user experience
    5. Search Ads Are Viewed as Untrustworthy


    In addition to the article there's a lively commentary discussion about the pros and cons of PPC.
    What do you think about these major points?
    Maybe Rich Ord would like to hear from you
    Last edited by Rhia7; October 17th, 2007 at 12:18 PM.
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  2. #2
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    "The rising cost has its biggest impact on small business where price matters more. When small businesses are cut out of buying popular key words they may eventually just give up on search marketing - not good in the long run for the search engines."

    The engines are after the VERY BIG spenders who continue to spend MORE.
    Budgets at the agencies increase each year.

    Why people call PPC "search marketing" is beyond me.

  3. #3
    What's the word? Rhia7's Avatar
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    Quote Originally Posted by Merchant Consultant Team
    Why people call PPC "search marketing" is beyond me.
    So are you saying that "the little guy" (Independent websites/marketers) will likely be squeezed out? The article states:
    hundreds of thousands of entrepreneurs in their web businesses. Quite a few sites, which prior to pay per click would have trouble making money, are earning more than $10,000 per month. [source]
    Thus this has become a way for a budget marketers to claim a slice of the pie, no?
    Do you think that only major marketers [i.e. huge companies and ad agencies] will have access to this in the future?
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  4. #4
    Outsourced Program Manager Stephanie Harris's Avatar
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    Great article, Rhia - thanks for sharing. I wouldn't argue with the clutter and "ad blindness" that is brought up. In fact, I think AdSense on blogs and many small affiliate sites, social network sites, etc. is a waste of space. I can't imagine anyone even "sees" those ads anymore. And the over-saturation of the AdSense columns I think has made the average internet user even more savvy to paid ads in the search engines. I can remember a time not far back at all where I needed to explain to friends the difference between a search result and a paid ad, and now everyone seems to know the difference. However, just because it is a paid ad does not mean that click should be less relevant to a person's search. I think the main determinant will be how sophisticated and smart we as marketers need to become in order for our search campaigns to remain relevant.

    By this I mean, so what there is a paid advertisement? When there are commercials on tv during early morning weekend cartoons for baby dolls and tonka trucks, you know those ad spots are still VERY effective. It was brought up at one of the conferences over the summer that affiliate marketers and search marketers should be given a schedule of when merchants are going to be running advertising spots on television so they can start bidding on related terms as soon as that spot airs. To me, this would allow PPC to capitalize on the effective ads on tv. Once someone sees an ad on tv, they go to their computers and type in "tonka" - wouldn't it be great if at that moment they saw a paid ad from an affiliate for tonka? It would make PPC more cost effective because you would know when exactly to spend your money on these ads, and when they would have the best odds of conversion.

    I think being smarter and more relevant is the only way to distinguish yourself from the rest of the ad clutter and the way for PPC to survive.
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  5. #5
    What's the word? Rhia7's Avatar
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    Quote Originally Posted by Stephanie Harris
    By this I mean, so what there is a paid advertisement?
    There's nothing wrong with that -- anything that can persuade the visitor/consumer to visit/spend time on one's site is good for business.
    It's just interesting that a recent Nielsen press release says that word of mouth is best
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  6. #6
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    I don't know if PPC is a sure bet..but I still think its a strong bet. Only thing I see changing, have seen changing is my costs. They're up about 60% this year..and growing for me personally at about this pace for the past couple years. In my opinion, costs are just going to continue to increase...and the PPC engines are going to continue to chomp into our ROI. I used to make 200%-300% ROI on some ads I ran.....now, I'm "lucky" to make 50%. I forsee a day where you're going to have to spend $1000 to make $100.

    I also wanted to make a point on #2: "Declining Relevance of Traffic/Transition to Cost Per Action". i'd like to suggest the ad display (PPC SERPs) are not as relevant anymore. if you search google, msn, i don't know, maybe its me..but i notice these guys display ads that have nothing to do with the search.

    overall, i believe you're going to need deep pockets to play the PPC game..but i wouldn't give up on it.....nor do i feel the party is over.

  7. #7
    What's the word? Rhia7's Avatar
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    Cowboysfan, could costs threaten your willingness/ability to participate in PPC in the future?

    Someone responded that greater costs reflect the value of the bids and the effectiveness of the ads
    Do you agree or disagree?

    Does the number of "players in the PPC market" affect the quality of results and user satisfaction? Would it be better to have fewer players or more players?
    There are no "right" or "wrong" answers, this is just an interesting discussion.

    Btw, I'm happy with the Nielsen press release on a personal level
    I find people who can be successful with PPC fascinating and I admire their skills although I often wonder about the longevity of keywords as commodities and price inflation.
    When is something such as a keyword way overpriced? What is the best way to stand back and measure value?

    I have a feeling that affiliates with a deal (an affiliate-merchant endorsed/okayed by the merchant deal) that the link goes back to the merchant's landing page could be more successful than PPC ads that go back to their own (although I acknowledge some exceptions to this).
    I feel sorry for affiliates with PPC campaigns that tank and lose a big chunk of money (but the affiliates knew risks were involved nevertheless, right?)
    Last edited by Rhia7; October 17th, 2007 at 02:43 PM.
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  8. #8
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    The title of this thread "threw" me -- I certainly don't consider PPC to be a "sure bet." It's certainly an extremely important and often highly profitable mode for marketing, but it's not a "sure thing" by any measure.

    Certainly, I find categories where I can't compete effectively for PPC traffic, because my ROI doesn't justify the bid rates that I'd need to draw more than trivial amounts of traffic. There are some nice niches where I can profit nicely as a "PPC affiliate," but I am aware that at any moment, someone might come in and bid higher than I can afford, and thus wipe out that income stream.

    But that's nothing new -- I experienced major upheavels of my "biggest campaigns" back in 1999 and again in 2001 (in each case, I was simply outbid until my campaigns were just a trickle). I haven't seen any current change that's comparable in scope to what happened in those "early days" of PPC search.

    Perhaps it's ironic that right now, I am actually re-testing a variation of the campaign that was "squashed" in 2001 -- launching 20,000 ad groups with 60,000 keyword phrases.

  9. #9
    Affiliate Manager Howard Gottlieb's Avatar
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    I believe it would be better to have fewer players of higher caliber but that is a very difficult paradigm for most merchants.

    The athletic shoe industry went through the same deal nearly 10 years. Nike and Adidas were extremely popular and in order to grow those brands added virtually any business that wanted to sell their products. The net result was that although the business grew it grew much less profitably than it would have with stronger partners that made sense. Now most of the large athletic shoe retailers have either gone out of business or merged/got acquired by Footlocker.

    In this industry the problem appears to be newcomers overbidding for the highest traffic terms making them unreasonably expensive. That leaves the more focused keywords that make more sense but are limited in daily traffic.
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  10. #10
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    Don't believe everything you read, this article is full of bunk.

    One things that is true is that it has become common and therefore crowded, it's no longer a winning proposition for nearly everyone that tries it. Compare it to the early days of SEO - good title tags and you were there... now, it's not that easy. PPC, same thing.

    And let me assure you that people are still clicking on my PPC ads... :-)

  11. #11
    Analytics Dude Kevin's Avatar
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    Yeah. We have a few Google bills that confirm Donuts assertion.
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  12. #12
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    What Donuts said. It's always going to be there, there will always be people out there willing to spend money on PPC. If someone drops out, someone will just take their place, somebody new will start. As with lots of things in this business, it's just more competitive. So you have more people bidding on each term and the prices go up. Which can actually be a good thing for smaller affiliates because it kind of forces you in a way to go after the longer tail stuff which is naturally more targetted ending up in higher conversions. And you can still bid and get traffic on the not so long tail stuff too, maybe a little higher.

  13. #13
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    Quote Originally Posted by Rhia7
    Cowboysfan, could costs threaten your willingness/ability to participate in PPC in the future?

    Someone responded that greater costs reflect the value of the bids and the effectiveness of the ads
    Do you agree or disagree?

    Does the number of "players in the PPC market" affect the quality of results and user satisfaction? Would it be better to have fewer players or more players?
    There are no "right" or "wrong" answers, this is just an interesting discussion.

    Btw, I'm happy with the Nielsen press release on a personal level
    I find people who can be successful with PPC fascinating and I admire their skills although I often wonder about the longevity of keywords as commodities and price inflation.
    When is something such as a keyword way overpriced? What is the best way to stand back and measure value?

    I have a feeling that affiliates with a deal (an affiliate-merchant endorsed/okayed by the merchant deal) that the link goes back to the merchant's landing page could be more successful than PPC ads that go back to their own (although I acknowledge some exceptions to this).
    I feel sorry for affiliates with PPC campaigns that tank and lose a big chunk of money (but the affiliates knew risks were involved nevertheless, right?)
    Rhia:

    as of right now..the rising costs just make me go out and get more credit

    its not really the prices that concern me..its managing my ROI that does. the bottom line is making money. right now using ppc; i'm making money. i don't forsee me stopping ppc at all...i just see my roi getting lower, my expenses getting higher. i've heard of people who make $10K a month using only ppc...but they spend $40K per month to do it.

    i don't know about the players effecting the value of the ads. as an advertiser, i of course would like to see less competition..then again, some of the areas i'm into are very competitive..and they are so because the money is there. in fact, most of the products/services i sell where due to much competition.

    with the ppc enviroment changing..getting more expense..here's the "secret": don't keep all your eggs in one basket. you have to find many areas to get into. the more the merrier. i can't tell you how many campaigns i have that are doing well one month, then not so well the next. ppc is an ongoing process. you have to up on testing, testing, and more testing..then build on what works..get rid of what doesn't...but i'm sure you guys already know that

  14. #14
    Member niche's Avatar
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    Pay per click has never been a sure bet but i admit that if done properly can be a source of income.

    I think the pletora of PPC ads is actually an advantage.

    From reviewing PPC ads, i find that a lot of the ads are poorly structured and spammy. This gives the experienced ad writer an opportunity to write an ad that stands out as a result of it's professional layout and targeted text

    I have no evidence of this but it seems that a lot of these ads are by newbies. Although they do drive up the cost per click, they do not necessarily reduce the CTR of your adverts if done properly
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  15. #15
    More Cheesier Than Ever Cheesehead's Avatar
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    Quote Originally Posted by Rhia7
    [*]Clutter and "ad blindness" [*]Declining Relevance of Traffic/Transition to Cost Per Action [*]Rising Costs [*]Content mixed with ads or solely created from ads as user experience[*]Search Ads Are Viewed as Untrustworthy
    Each of these potential problems has a remedy. Not to say it won't get tougher.
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