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Yahoo Search Marketing Pay Per Click Advertising Forum

    
Overture Min Price Increase Fallout
How to get them to put min bids back down
edneil




msg:811751
 8:52 am on Feb 8, 2003 (gmt 0)

I am assuming that with their cynical increase of minimum bids, they can now afford to lose half their advertisers and still make the same money. How big a boycott would their need to be for them to change their tactics. I am going to let my funds run dry and not renew my advertising. How many would need to do that?

 

webdiversity




msg:811752
 9:30 am on Feb 8, 2003 (gmt 0)

not many edneil.

For every advertiser that leaves there will be one that joins and although many advertisers will leave their bids below 10 cente/10 pence the competitive nature of PPC will lead advertisers to break ranks and start to increase their bids. What will fuel this is the realisation that as you drop from 1st to 2nd, 2nd to 3rd, 3rd to 4th the number of clicks diminishes, and there will come a point where even at 5 cents because of the lack of critical mass it ceases to become value for money.

Every advertiser that sells something could add a few % to their own prices to cover some of the increased expenditure. This could also be a good time to evaluate the worth of every keyword that has received a click, maybe with a view to rewriting the ads to see if you can't extract more value from it. Changing the title/description will not cause you to have to alter the price you pay.

Look at the scenario :

You sell widgets, you are one of 5 advertisers with Overture. You and 3 of your competitors vote with your CC and go to Google where there are another 5 of your competitors, plus the 3 of you who have left Overture, Your now one of 8 advertisers as opposed to one of 2, where do you think the better "value" will come from?

vibgyor79




msg:811753
 9:40 am on Feb 8, 2003 (gmt 0)

I am going to let my funds run dry and not renew my advertising

Make sure you cancel your account. Else, you will be charged $20 per month maintenance fee.

Pray everyday that Overture will lose Yahoo and MSN.

Take your advertising dollars to FindWhat and Google.

Good luck!

Napoleon




msg:811754
 9:47 am on Feb 8, 2003 (gmt 0)

The value depends entirely on your ROI. If the metrics are such that your visitor on your selected word(s) is worth less than 10c/p on average, you ain't going to stick around Overture.

Every time they increase they move closer to bigger business and further away from the small guys.

Equally though... and this is important... they also tend to move away from the niche/quality information type sites, which sell stuff but not as a PRIME function.

It is the latter that will eventually kill them, because it diminishes their quality. That's the sort of thing that drives visitors to Google, where they can still get the info/quality sites by virtue of the standard (free) returns. It is this that will ultimately condition people not to click on sponsored links (this actually already applies to a large degree already).

For Overture then, this sort of hike equates to: short term gain for long term pain.

WindSun




msg:811755
 1:11 pm on Feb 8, 2003 (gmt 0)

"they can now afford to lose half their advertisers and still make the same money..."

Not likely.

If you really think that most keywords are going for a nickel, then you have not been in the same world I am in. I can think of very few keywords of any real importance to us that go for under 20 cents or so.

While we have a few keywords in the 5 to 10 cent bracket, the vast majority of our important ones are in the 15 to 75 cent area.
In fact, this will probably help us as it will get rid of some of the low end clutter. At the very least it will get rid of some of those old grandfathered 1 and 2 cent ads competing with our uncommon keyword ads.

mundonet




msg:811756
 11:22 am on Feb 12, 2003 (gmt 0)

"with Autobid you always pay the minimum" so I raised some bids @ $.15, .20, etc and was still been charged @ $.05 for some no competitive niche kw and wham they are now @ $.10 minimum. Should have let them alone @ $.05, grrr!

Crabby




msg:811757
 4:19 pm on Feb 12, 2003 (gmt 0)

<<<Take your advertising dollars to FindWhat and Google.>>>

That's just what I am doing. I have several of those "niche" sites and don't need to bid high - just have to bid enough to be listed. Plus we'll increase our Ink exposure.

G'bye big "O" ;)

Bio4ce




msg:811758
 4:42 am on Feb 16, 2003 (gmt 0)

<Make sure you cancel your account. Else, you will be charged $20 per month maintenance fee. >

Do they do that? I didn't do any PPC in December. I never saw a $20 maintenance fee.

nipear




msg:811759
 6:24 am on Feb 16, 2003 (gmt 0)

You only have to pay the $20 min. if you have activity during the month. So if you did $60 this month and let it run out this week you won't be charged anything for March, April....

Bio4ce




msg:811760
 6:30 am on Feb 16, 2003 (gmt 0)

Gotcha. I got a little worried. I didn't want them charging me if I hadn't used them at all during the month of December.

Thanks

:)

Napoleon




msg:811761
 7:40 am on Feb 16, 2003 (gmt 0)

>> I didn't want them charging me if I hadn't used them at all during the month of December <<

Hmmm. I wonder if that's in line for the next increase. Wouldn't surprise me at all with those guys.

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