$50 per click

11-01-2005

Soaring profits found in search ads
Google, Yahoo benefit from higher prices for key phrases
By Jefferson Graham
USA TODAY

LOS ANGELES — It's no wonder Google's profit shot up sevenfold this quarter: Prices are soaring for search ads — those simple text ads that appear next to Internet search results.

Advertisers pay each time someone clicks on an ad. Search ads used to be available for a nickel or dime per click. Now they're costing more than $1, some even $40 or $50.

Google and rival Internet giant Yahoo dominate the $8 billion market for search ads, which are sold in an auction setting. So far this year, Google has reported revenue of more than $4 billion, almost all of it from the sale of advertising. “It's a supply and demand marketplace,” says Gregg Stewart, senior vice-president at search-marketing consultancy Fathom Online. “As more advertisers get involved, that drives prices up.”

Rates have risen 18% on average from a year ago, says Dave Lavinsky, who runs a site called TopPayingKeywords.com.

Soaring search ad rates helped Yahoo quarterly revenue shoot up 47% to $1.3 billion. Google's $381 million profit was fueled by a 96% revenue increase, to $1.6 billion, nearly all of it from search ads.

Advertisers love search ads because unlike mass-audience TV or print ads, they are targeted to people who are actively looking to buy. And advertisers only have to pay for an ad if a customer clicks on it.

Companies bid on words that relate to their business. For instance, a Florida lawyer would reach searchers looking for “Florida lawyer” and pay $15.49 each time the ad was clicked. That phrase cost just $2.02 in July, Lavinsky says. Other big jumps: “graphic design Chicago,” from $1.01 to $7.98; and “donate time share,” from 50 cents to $11 a click.

The most expensive phrase —“Chicago personal injury attorney” — sells for about $50, Lavinsky says. Lawyers are willing to pay to attract clients. A year ago, that keyword combination sold for $30, Lavinsky says.

Companies big and small spend countless hours and strategies trying to master the science of rising to the top of Google and Yahoo's regular search results.

Investing in paid search ads guarantees prominent placement.

In response to the rising ad rates, Jane Moritz recently decided to suspend paid advertising for her small business and work on making her site more Google friendly. “I was paying $1.50 a click, and then it went to $4,” says Moritz, who runs a baked-goods site, Challahconnection.com. “Not every click turns into a sale. You're lucky if you get 30%.”

Moritz has begun advertising again, but fears that competitors with deeper pockets will bid up prices during the holidays. “I can't afford to pay $6 a click every time someone looks at my site,” she says.

http://www.usatoday.com/printedition...ogle31.art.htm

11-01-2005

Damn .... Dravyk, with payouts like that even your sites could make $200 a week

Newton · 11-01-2005

Ahahahahahaha

Trev · 11-01-2005

Quote:

Originally Posted by Technick

Damn .... Dravyk, with payouts like that even your sites could make $200 a week

hahahaha

Newton · 11-01-2005

Get him Dravyk

el pres · 11-01-2005

Bet they don't want people just clicking around on those links, could get expensive.

DrGuile · 11-01-2005

Quote:

Originally Posted by el pres

Bet they don't want people just clicking around on those links, could get expensive.

I just wasted someone's 200$

Nickatilynx · 11-01-2005

Hmmmm...some aggressive marketing type bastard could contact these people via email and offer them....

Never mind

Dravyk · 11-01-2005

Quote:

Originally Posted by Technick

Damn .... Dravyk, with payouts like that even your sites could make $200 a week

Thanks, Technick. I'll keep that in mind if I ever want to suffer an 60% profit loss.

Hmm. Wonder what the keywords cost is for "Canadian pain in the ass".

Dravyk · 11-01-2005

Quote:

Originally Posted by Technick

Soaring search ad rates helped Yahoo quarterly revenue shoot up 47% to $1.3 billion. Google's $381 million profit was fueled by a 96% revenue increase, to $1.6 billion, nearly all of it from search ads.

But "SEs are dead" so sayeth MikeAI!

11-01-2005	#1
Technick Guest Posts: n/a	$50 per click Soaring profits found in search ads Google, Yahoo benefit from higher prices for key phrases By Jefferson Graham USA TODAY LOS ANGELES — It's no wonder Google's profit shot up sevenfold this quarter: Prices are soaring for search ads — those simple text ads that appear next to Internet search results. Advertisers pay each time someone clicks on an ad. Search ads used to be available for a nickel or dime per click. Now they're costing more than $1, some even $40 or $50. Google and rival Internet giant Yahoo dominate the $8 billion market for search ads, which are sold in an auction setting. So far this year, Google has reported revenue of more than $4 billion, almost all of it from the sale of advertising. “It's a supply and demand marketplace,” says Gregg Stewart, senior vice-president at search-marketing consultancy Fathom Online. “As more advertisers get involved, that drives prices up.” Rates have risen 18% on average from a year ago, says Dave Lavinsky, who runs a site called TopPayingKeywords.com. Soaring search ad rates helped Yahoo quarterly revenue shoot up 47% to $1.3 billion. Google's $381 million profit was fueled by a 96% revenue increase, to $1.6 billion, nearly all of it from search ads. Advertisers love search ads because unlike mass-audience TV or print ads, they are targeted to people who are actively looking to buy. And advertisers only have to pay for an ad if a customer clicks on it. Companies bid on words that relate to their business. For instance, a Florida lawyer would reach searchers looking for “Florida lawyer” and pay $15.49 each time the ad was clicked. That phrase cost just $2.02 in July, Lavinsky says. Other big jumps: “graphic design Chicago,” from $1.01 to $7.98; and “donate time share,” from 50 cents to $11 a click. The most expensive phrase —“Chicago personal injury attorney” — sells for about $50, Lavinsky says. Lawyers are willing to pay to attract clients. A year ago, that keyword combination sold for $30, Lavinsky says. Companies big and small spend countless hours and strategies trying to master the science of rising to the top of Google and Yahoo's regular search results. Investing in paid search ads guarantees prominent placement. In response to the rising ad rates, Jane Moritz recently decided to suspend paid advertising for her small business and work on making her site more Google friendly. “I was paying $1.50 a click, and then it went to $4,” says Moritz, who runs a baked-goods site, Challahconnection.com. “Not every click turns into a sale. You're lucky if you get 30%.” Moritz has begun advertising again, but fears that competitors with deeper pockets will bid up prices during the holidays. “I can't afford to pay $6 a click every time someone looks at my site,” she says. http://www.usatoday.com/printedition...ogle31.art.htm

11-01-2005	#2
Technick Guest Posts: n/a	Re: $50 per click Damn .... Dravyk, with payouts like that even your sites could make $200 a week

11-01-2005	#3
Newton It's always business, never personal! The POWER of radio Oprano Radio Join Date: Aug 2004 Location: On a golf course Posts: 4,916	Re: $50 per click Ahahahahahaha __________________ Poser Bush in a mix-up over his hi-tech gizmo - ICLOD

11-01-2005	#5
Newton It's always business, never personal! The POWER of radio Oprano Radio Join Date: Aug 2004 Location: On a golf course Posts: 4,916	Re: $50 per click Get him Dravyk __________________ Poser Bush in a mix-up over his hi-tech gizmo - ICLOD

11-01-2005	#6
el pres Members Join Date: Oct 2002 Location: Spain Posts: 425	Re: $50 per click Bet they don't want people just clicking around on those links, could get expensive.

11-01-2005	#8
Nickatilynx Banned Want to see your own Advertising Here! Join Date: Oct 2002 Location: Vancouver Canada Posts: 15,115	Re: $50 per click Hmmmm...some aggressive marketing type bastard could contact these people via email and offer them.... Never mind