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

Will the Pay-Per-Click Model Hold Up as Click Prices Rise? Presented by: Avi Wilensky, CEO Promediacorp. 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 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

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-perclick 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 Q 4 2007; that is an increase of more than 2% from Q 4 2006 and a 0. 4% increase of Q 3 2007. § Last March, Google went on record saying that click fraud is just 0. 02% of clicks.

More $ and Bidders are Entering The Auction “Tel Aviv hotels” $6 $5 $3 $4

More “ROI Blind” Bidders Are Entering the Auction “Gaza Strip resorts” $5 $3 $4 $6

Potential Mergers May Limit Keyword Supply Image source: mashable. com § If Yahoo! Search Marketing and MSN Ad. Center 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 Ad. Words 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 Inflation and Staying Ahead of the Competition!

#10 Buy Text Link Ads Use Affiliate Code: PROMEDIACORP (Just Kidding )

#9 Invest in the “Shvantz” (tail) heads tails http: //adwords. google. com/select/Keyword. Tool

#8 Geo-Targeting Is Your Friend Wall St.

#7 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

#6 Don’t Ignore Usability 3 Great Resources: • Dr. Jakob Nielsen’s www. Use. It. com • Kim Krause-Berg’s www. usabilityeffect. com • US Government Guide to Usability – www. usability. gov

#5 Write 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 Call to action Keyword 2 X Keyword 3 X

#4 Diversification: Yahoo, MSN, Ask and other search engines still exist!

#3 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 Ad. Words users. Adwords Demographic Targeting is now in BETA!!! THIS IS A MAJOR STEP FORWARD!

#2 Experiment with Dayparting

#1 Know That It’s OK To Not Be in the #1 Spot! § Avoid getting caught up in a bidding war Thank you! View the Presentation at Promediacorp. com/sphinncon