Pay-Per-Click Not-So-Easy

• Posted: Friday, November 24, 2006
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• Author: pradhana
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• Filed under: Advertising, Market Survey

Pay-per-click advertising is not as simple as it might seem.

Online marketers have taken to pay-per-click (PPC), and many use it, but apparently not everyone understands it very well.

Although online marketers have been investing in PPC search marketing for a number of years, a new survey of marketers — all of whom have been using PPC for at least two years — conducted by the e-tailing group found that managing PPC programs poses a challenge.

The fact that marketers use PPC was clear from the survey. In fact, with 44% of e-commerce executives surveyed saying they allocate 20% of their entire advertising budgets to PPC search ads, it constitutes a significant portion of online marketing budgets.

They agree on where to spend PPC ad dollars, too. Of the marketers who invest in PPC campaigns:

100% use Google
90% use Yahoo!
76% use MSN
27% use Ask.com

The problem is that 40% of the respondents reported that they manage more than 5,000 keywords. To accomplish the task, 59% manage internally, 18% outsource and 24% use a combination of internal and outsourced solutions.

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