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Monday, December 4, 2006

Pay-Per-Click Campaigns Still Challenge Marketers

Posted by @ 7:04 pm

The first annual E-tailer PPC Stress Study has revealed that over 44% of surveyed marketers spend 20% or more of their online advertising budgets on PPC, but still struggle with resourcing and measurement of their pay-per-click campaigns.

The study, carried out by the e-tailing group, inc. and NetElixir, Inc., provides a valuable insight into the state of pay-per-click campaign management:

  • 100% of e-commerce executives use Google Adwords, 90% use Yahoo! Search Marketing, 76% use Micorsoft AdCenter and 27% use Ask Sponsored Listings.
  • 40% of advertisers manage more than 5000 keywords.
  • 59% of respondents manage their campaigns internally, 18% outsource pay-per-click management and 23% use a mix of internal and external PPC campaign management.
  • Cost (71%), ease of execution (63%), control (25%) and prior negative outsourcing experiences (33%) are cited as the main reasons for managing PPC campaigns in-house.
  • Time spent on managing pay-per-click campaigns ranges from less than 5 hours per week for 32% of respondents to over 21 hours per week for 33% of respondents.
  • Almost all respondents (99%) have 3 or less people working on their PPC campaigns.
  • 80% of managers use ROI as the benchmark for measuring the success of their PPC campaigns.
  • 47% of e-commerce executives say that their average cost-per-click is less than $0.50.

The bottom line? Pay-per-click advertising has well and truly become an integral part of online advertising, but those involved in the day to day management of pay-per-click campaigns are still struggling with the execution. With more and more smaller companies starting to use pay-per-click advertising, the need for simple PPC solutions should continue to grow.

Discussion (1 - comment)

As always, articles from Indeed Hits provide excellent reading and food for thought. The ‘Pay-Per-Click Campaigns Still Challenge Marketers’ item confirms other articles from various sources indicating that PPC is a growing and more competitive market. As a site publisher, I am at a loss to explain why the CPMs (advertiser’s ost per 1000 impressions) on my websites have shown such minimal ncreases on last year. For example on, which
has GoogleAds on most of its 600+pages, page views & hits have doubled over 2005, click through rate has remained static, but the CPM has risen just 0.4%.I can only assume that the increase in CPC advertising is a myth, or CPC rates have not risen to deflect demand, or that Google is taking a bigger slice. I would be interested in the experiences of others.

By - December 5, 2006

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