PPC. Will it become to expensive?

[mrseo]

I am doing research for an article and would like to throw this out there. If the cost of PPC is rising how will small site owners afford it? The education indusrty has seen a 78 percent hike it PPC cost. The top phrase is well over $3.00 Do you think google will do anything to stop large companies from over taking PPC? Or, do you think keywords will get has high as $10? If that happens small guys will have to rely on natural SEO. Does Google care?

[ogletree]

Yes it will. We have gotten too used to really cheap advertising. I can't advertise anywhere else that gives me access to that many people it costs too much. As soon as the business world figures it out there will be no way a normal person can afford PPC. They don't consider ROI for TV ads why would they for online ads. They have a budget.

[Essex_boy]

This is a subject ive offten considered and conclusion is that why would they worry?

Large firms have nearlimitless funds for adverts we dont as small website owners, teh days of the web being for small guys to even up the competition are gone.

[ronburk]

If the cost of PPC is rising how will small site owners afford it?

Just the same way they deal with the rising cost of all manner of things, including fuel, services, health care, etc. The main difference with PPC is that the cost probably isn't rising, or at least not as fast. As with all things Google, one only hears cries from the economic losers, not the economic winners.

Example: I felt very strongly when Google raised my minimum bid for several keywords to $.10. However, after I saw how much money I saved on all the keywords whose minimum bid now dropped below the previous minimum of $.05, I finally relented and re-enabled those $.10 keyword bids. Net result: I pay less for more traffic than I did before, despite the fact that $.05 is no longer a guaranteed minimum bid.

[Tropical Island]

It's all about adapting to the market.

We can't change it so we have to work with it.

[mrseo]

Well, I am talking more big numbers. Not small 10 cent words. I mean if you are paying 25 cents now and 1 year from now it is $1.00 can you afford to run your adwords?

[OptiRex]

What will also be interesting is how different countries/regions react since the smaller business in the USA seems more susceptible to these hikes than probably Europe is and that is probably entirely due to the lesser distances involved between major conurbations.

It is a fact that in the UK, and this is borne out by the Latest Dixons TV adverts, that the majority of UK high Street purchasers research on-line before making that off-line purchase. Colleagues report a similar scenario in Germany.

Sure, on-line purchases are happening however, for major household purchases, not to the degree as in the USA and Canada. Unless one lives in northern Scandinavia, throughout Europe most of the population have a major shopping centre within a 1~2 hour drive so they can physically examine their intended purchase(s) at several outlets.

Personally, from my widget trade, I have noticed a trend these past few years away from the large companies offerings with people preferring to purchase more individual items rather than the mass-produced sameness.

How long does one give for the business future of the B&Q and Ikea's? Certainly they provide a perceived lifestyle at present but for how much longer? B&Q is already closing down some 20+ stores which "are no longer required"!

I think the future is very bright for those small businesses that home in early on a new trend or fashion which should mean a reasonable PPC model for them to exist. Whether that will be good for us as publishers remains to be seen however if we can get their advertisements on our widget sites, no problem.

[sun818]

> We can't change it so we have to work with it.

Right. Find another niche. Its amazing to me how many businesses have no idea how to market on the web and some of us are here to represent them.

[incrediBILL]

It's already too expensive....

$0.01 per click. $0.05 per click min... BS!

Google wont turn on your campaign unless it's $0.20 per click!

BITE ME GOOGLE!