Are you watching the search marketing cost closely?
As the online shopping boom peaks for Christmas, one thing is certain- the major search engines are bound to reap a huge windfall in PPC revenues, as marketers seek to catch the attention of shoppers.
A DoubleClick report for the last quarter itself indicated a rise in search marketing costs- both cost per keyword (CPK) and cost per click (CPC). If that was the state of affairs in the 3rd quarter, one can well expect the costs to mover further up between now and the peak Christmas shopping season.
This is definitely a time for us to be extra vigilant of our marketing costs, because chances are that in the euphoria of driving more sales, we may neglect the cost per sale. That's never a good thing to do, and particularly now, when the marketing dollars could be drained off rather quickly.
In the meantime, here is some good news--- I noticed posts on the Search Engine Watch forums indicating that Google is re-introducing its Adwords display at the bottom of the page (which it used to have long back). Why Google is doing this is a matter of conjecture--- but we could hope that by adding in more advertising space, the bid costs could be brought down slightly lower than what they would otherwise be. Obviously, more ad space would mean potentially more click-throughs for Google, which means more revenue for the company.
Can't blame the smart company for cashing in on the season, can we?
Until next time,
Ben Flux
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