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-per- click 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 Q4 2007; that is an increase of more than 2% from Q and a 0.4% increase of Q  Last March, Google went on record saying that click fraud is just 0.02% of clicks.

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

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

Potential Mergers May Limit Keyword Supply Image source: mashable.com  If Yahoo! Search Marketing and MSN AdCenter 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 AdWords program brings in more revenue than NBC, CBS, and ABC combined.  Forbes projects $8 billion in PPC revenue for  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!

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

#9 Invest in the “Shvantz” (tail) heads tails

#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?

#6 Don’t Ignore Usability 3 Great Resources: Dr. Jakob Nielsen’s Kim Krause-Berg’s US Government Guide to Usability –

#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 Keyword 2X Keyword 3X Call to action

#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 AdWords 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 View the Presentation at Promediacorp.com/sphinncon Thank you!