Google's increased allocation of screen real estate to PPC advertising has an impact on Google Revenues, Search Marketing Spending, and the strategies of SEO and SEM marketers.
New York (PRWEB) August 18, 2005 –- Did-it.com has determined that
Google's increase from two to three paid listings at the top of its commercial
search results to be huge change for marketers. This recent change to the Google
AdWords will likely have a significant impact on marketer spending within Google
AdWords. This spend increase manifests itself as a positive change in the
monetization rate or yield Google realizes from the millions of searches per
day, for which it serves advertising links.
For commercial queries, Google is now selectively displaying three paid ads at the top of the page in the sponsored links area. The increased real estate on the page for the highly popular commercial searches will increase ad revenue. Interestingly, for many of the searches, the PPC (pay-per-click) search listings are more relevant than the organic (or algorithmic) results, due to the fact that Google has adopted a more sophisticated quality-score method within the AdRank algorithm for ads. The new AdRank algorithms assures both high yield and high relevance more accurately than before.
Impact on Google Revenue
“Google may see a double digit improvement in yield based on a combination of improved monetization per search combined with spending escalation fueled as a result of the change,” states Kevin Lee, Executive Chairman of Did-it.com. “Marketers now have one more position to fight over,” continued Kevin.
Marketers with keywords that used to serve up in the third position for commercial searches will likely see an increased clickthrough rate, and therefore, higher spending. Earlier eyetracking research predicted the data that Did-it is seeing in client campaigns: increased clickthrough in position #3 and a slight reduction in position #2. The full eyetracking study is available for sale.
“The timing of this change in algorithm and policies to coincide with Q3 and Q4 gives Google an extremely strong position for the holidays when the percentage of commercial searches escalates,” states Bill Wise, Did-it.com CEO. “We have already adjusted our technology to factor in the changes to the Google system for our clients” continues Bill Wise.
Google’s increase to three PPC listings also coincides with a change in the AdRank algorithm, which calculates the position a marketer will receive, given a specific bid. A quality score based on a variety of factors, including historical clickthrough rate, is now in use.
If you're a marketer and are unsure about how to deal with the constant changes in Google’s AdWords PPC search platform, and you want to maximize the profit you can extract from search marketplaces, then perhaps a call to the Did-it.com team makes sense for your company. Founded in 1996, Did-it is a leader in the field of Search Engine Marketing. Unlike other firms, Did-it's strategies, techniques, analytics and technology deliver profits though a proprietary customized campaign management platform (Maestro) that updates keyword bidding strategies in real-time. Maestro also provides a platform for execution of sophisticated conversion enhancement tests. Through the application of tailored strategies, the Did-it team delivers unmatched results. Executive Chairman and Co-Founder Kevin Lee has authored over 100 search marketing articles and speaks at top conferences internationally. Kevin is also the Chairman of SEMPO--the Search Engine Marketing Professional Organization--a non-profit trade association.
Did-it.com can be reached at Did-it.com or 800-932-7761.
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Source : http://www.prweb.com/releases/2005/8/prweb273789.htm