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The Pay Per Click Reality
Overview, What is Pay Per Click Advertising?
Pay Per Click Management Services
Limiting Your Market: What You Don't Know About
Search Patterns
Pay Per Click Bid Management Software
Pay Per Click Cost
Pay Per Click ROI Report
PPC Click Through Rates
Click Fraud
Pay Per Click Return on Investment (ROI) Report
Pay Per Click (PPC) search engine advertising does not deliver the same Return on Investment as that of organic search engine optimization developed by a professional search engine marketing and custom website design company like Dynamic Digital Advertising (DDA). The overall conversion rate of PPC sites is 3 times less than that of unpaid sites1.
How Much is Spent on Pay Per Click Search Engine
Advertising?
$4.7 billion was spent on PPC online advertising programs in 2005, that's
81% of the total $5.75 billion spent on search engine marketing2. Even
though advertisers' are spending that much money, 4 out of 5 search
engine users still report never clicking on paid search listings3. Keyword
acquisition is, by far, the greatest cost in a PPC program, in 2005
keyword prices saw a 43.7% increase from 20044. Many times the cost
of keywords and keyword phrases is so high that acquisition exceeds
the actual ROI.
Competition
As the amount spent on PPC programs increases, acquiring the best keywords
and keyword phrases becomes more and more competitive. Competitors are
purchasing advertiser's names as keywords resulting in 1 in 7 searches
where a search engine user clicks on an advertiser's competitor's site5.
Advertiser's end up spending so much money trying to beat out the competition
that they rarely end up realizing any significant profit from their
PPC program.
Return on Investment
Only 11% of advertisers report generating higher ROI from their paid
listings than their organic search engine listings6. Generating a high
ROI is so difficult for advertiser's using Pay Per Click search engine
marketing because consumers recognize the difference between a paid
listing and an organic search engine listing designed by a professional
website promotion custom website design company like DDA. Hundreds of
thousands of keywords are purchased and search engine users never click
on the ads they are assigned to because 80% of searchers report that
they never click on sponsored ads7.
1 SEMPO 2006
2 SEMPO “The State of Search Engine Marketing 2005”
3 The iProspect Search Engine User Behavior Study, April
2006
4 iProspect
5 Hitwise study 2006
6 iProspect Outsourced SEO Metrics and ROI study
7 The iProspect Search Engine User Behavior Study, April
2006
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