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Then FindWhat went to a 5¢ minimum and, as Compworld points out, the quality of the traffic deteriorated. The advertisers in the first four spots quickly disappeared and there we were stuck at 3¢ in first place with no where to go. Our clicks skyrocketed to a point that even at 3¢ it was too much for our budget. We have eliminated an ad that has been there for 2 years.
This is one of the dangers when companies with less than stellar traffic raise their minimum bids. They end up losing a lot of marginal ads because of the cost.
However, the PPCs also have to pay people to check all of the new listings, which drives up costs, so unless those $0.01 bids are going to cover the costs of the review time, then what is the point of having them? Hence they have to reduce costs by reducing the number of bids to check to a point where the numbers balance.
I may be wrong of course.
A 0.01 bid can receive 100,000,000 clicks and make the review time totally worthwhile. The point is if I am a webmaster partnering with several PPC SEs the one with 0.01 bids would hardly receive any clicks from me as I would have partners with 0.03 and 0.05 per click to send traffic to.
In short, is there are a correlation with a certain UK ppc in this respect?
I'm willing to bid up to $.18 on Google and Overture for some keywords that it just doesn't make sense for me to bid $.03 on Findwhat. What reasons can you point to for the lower ROI (value) of traffic that comes from Findwhat when compared to Overture and Google.
A 0.01 bid can receive 100,000,000 clicks and make the review time totally worthwhile
Of course this is undeniably true, but the problem is that most of the 0.01 bids won't get enough clicks to make them worthwhile. most of the 0.01 bids will be at the bottom of the bidding pile, or, if not, they will be top for very rare phrases.
Companies work on averages, so I presume that Findwhat have calculated their cut off point for breaking even on an average listing.
Findwhat's problem, it would appear, is that the quality of traffic prevents the bid prices from rising to the same potential as Overture or Google.
They would be better suited that way.
I can see many reasons why traffic from second tier PPC SEs is not nearly as good as traffic from Google and Yahoo.
Would you mind listing some of them? I'm asking because I would like to begin buying traffic from Findwhat again, however, I need a better strategy if I plan to do so. I'm holding up a sign, "WILL SPEND FOR ROI".
He-he, we'll all spend for ROI :)
As for the reasons, here they are:
When somebody is "advanced" enough to buy something from the Interenet, they also advanced enough to know about Google and Yahoo. If I am looking for something with my credit card ready, I go to Google. Visitors of smaller websites came there from google or yahoo searching for something, and, when they are done with the site, they can return to Google or, if the site is partnering with a PPC SE, they can search for something on it, too. Mostly out of curiosity and mostly generic terms. It may well be a fellow webmaster interested who is the search results provider and who is listed there. This traffic is secondary.
Wich traffic would convert better:
google -> you
google -> PPC SE's search partner -> you?
Webmasters of smaller websites are different from Google admins. If they are partnering with a PPC SE, they first debug their scripts, they check if the clicks are refelcted in the partner statistic. You get some useless clicks from there. Some of them are doing it every day to make sure that everithing is working. Sometimes they look through the logs and click on the links to see where they visitors clicked. Sometimes they have "competitors" who would click on all the links on the site to see what it is and how it all works. Sometimes they have somebody who would click on every paid link several time a day to give the website a bad name. There are many of smaller websites, they are different, they may be not well protected from clickbots, and some of them may be fraud. Some of them may be very good, of course.
The adveritsers on a second tier search engine are smaller, too. Some of them would try to click competitors off the listing to regain a cheap first position and make a couple of bucks.
Depending on keywords, bids, time of the year and stellar disposition you may have these and other reasons affecting you or not. This is why this traffic is cheaper.
Some websites are making money with second tier PPC SEs for years, some leave after the first failure. There are happy customers and unhappy customers. It's a game of skill and chance, isn't it?
Therefore, their traffic is in the same league as Findnothing. If you could bid 0.01 - 0.03 per keyword, then maybe it may be worth something. But nope, they did the same stupid 0.05 raise in 08/2001, and at least from my perspective, it is not worth the bandwidth. In Findnothings case, their stock has been tumbling down (NASDAQ:FWHT). I wonder if their bottom line is deteriorating due to the bailout of advertisers.
Am checking on the clickthrough reports and there is no correlation with the charges I am paying and the chrge I think I am paying through their reporting system...
could you imagine an espotting / findwhat advertisers interface - what a mare!