SEMPO Addresses Rising PPC Costs

Written on
Apr 25, 2006 
Sarah Novotny  |

Today at the Search Engine Strategies 2006 Conference on Toronto, SEMPO (the Search Engine Marketing Professional Association) announced the latest results of a survey, revealing that few advertisers are prepared for the rising PPC advertising costs. SEMPO is a search marketing non-profit representing more than 380 search-related companies.

The survey found that 4/5 of advertisers said they were capable of handling an increase in PPC costs, but most of them could only handle a PPC increase of 30% or less. Three-quarters of all advertisers have also experienced a PPC cost increase over the last year. PPC marketers have responded by altering spending accordingly, and re-allocating funds from things like affiliate marketing, web development, and other forms of on- and off-line marketing and advertising.

“Despite increasing ad spend and year-to-year growth in the value of search engine marketing, we are likely nearing a pricing plateau as advertisers near their maximum efficiency,” said SEMPO chairman Gord Hotchkiss in a statement. Of the 553 respondents, 71% said they would try to increase their visitor conversion rate, and 62% said they would try to optimize their bidding strategies before reducing their ad spending.

Sarah Novotny is a contributing editor at Adotas. Sarah grew up in San Jose, California. Her educational and professional career have taken her to both Los Angeles and New York City where she received a B.F.A. from NYU. As a writer, Sarah has free-lanced for various publications focusing primarily on traditional advertising and media reviews. When not writing and editing for Adotas, Sarah is continuing her acting career in various theatrical and film/television productions.

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