New findings released by DoubleClick’s Performics indicate that search marketers are becoming more adept at handling fluctuating marketing conditions and are running more effective campaigns.
The study indicates that the time immediately following a period of active consumer participation can present a challenge for paid search marketers who do not react quickly enough to avoid continuing to buy keywords at an inflated price.
“Seasonal spikes in consumer activity require search advertisers to quickly react to changing market conditions to avoid ineffective ad expenditures,” said president of Performics, Stuart Frankel. “The report’s findings indicate that advertisers are increasingly cognizant of these issues and are adjusting strategies accordingly as search engine marketing continues to grow.”
Bids were noticeably reduced after the holiday season during the fourth quarter of 2005. In the first quarter of 2006 both cost per keyword (CPK, which is the total cost of owning a keyword during the span of one month) and cost per click (CPC) figures returned to levels close to those in the first quarter of 2005. The average CPK dropped from $59 during the fourth quarter to $30 during the first quarter, a decline of almost 50%.
According to the study, the number of keywords garnering at least one click or conversion per month increased 36% in the first quarter of 2006, compared to the first quarter of 2005.
Total spending was up 37% during this period, while total clicks increased 24%. Sales increased 72%.
The Performics 50 was formed in April 2004 by DoubleClick to be its performance marketing division. It is an index of 50 paid search campaigns that keeps track of the growth of paid search advertising and provides a stable platform for benchmarking and study.
Sources:
http://www.prnewswire.com/cgi-bin/stories.
pl?ACCT=104&STORY=/www/story/06-22-2006/0004385595&EDATE=
http://www.dmnews.com/cms/dm-news/search-marketing/37265.html
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