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During the third quarter 2002, Overture's market-leading advertiser base continued to grow as more businesses used Pay-For-Performance search to reach potential customers and help increase their bottom lines. The number of active, paying advertisers using Overture grew to 73,000 in the third quarter 2002, up from 49,000 at the end of the third quarter 2001 and 67,000 from the end of the second quarter 2002.
During the third quarter 2002, Overture made a range of improvements to its advertiser systems and services. These enhancements address two key advertiser priorities: presenting relevant search listings to more Internet users and decreasing the amount of time advertisers spend managing their Overture accounts. The end result is a more efficient marketplace and higher quality search listings.
1) Average advertiser cost per click is now $0.34 (previously $0.21)
2) Expected 2003 annual revenues $0.92 Billion
By the way, what is "traffic acquisition expenses"?
actually better not say, would give the whole game away :)
Shak
Traffic Acquisition Expenses = The cost an advertiser incurs to buy the traffic in question.
Thats one heck of an average CPC though, if thats reality!
That is quite expensive, considering...no wonder why they have been trying hard to increase the minimum earnings per click. At prices that high, they have to. :)
The figure in all of the numbers that made me look was the 500 million paid searches, up from 387 in the same quarter last year but 15 million down from Q2. Does that mean people are getting turned off by paid ads now?
$0.34 average
82% UK reach
Interesting numbers indeed.
I used to pay between 20-50 cents a click (since late 99), but now there are crazies in my keywords playing 7-10 bucks a click....its wild.....that's why I'm looking into L$ and others.....
its a catch 22 though, I'm looking for volume (I would love to get about 6,000 uniques/month) and in order to do that ovrt needs to be part of the mix, imo.....if anmyone can suggest how I can get more volume/equivlent for the same cost as ovrt (currently im up to $1.20 cpc) i'm all ears. L$ got me really interested, but Im not sure about their customer service,etc.
I currently also use:
Findwhat
Kanoodle
abcsearch
goclick
7search
etc.
I used to use about.com and google, but the results were bad....I just get kicked off every few hrs for having poor conversion ratios, & I feel that my KEY 'keywords' like java programmer cant be more specific. Also certian really niche keywords get a 0 for 0 ratio which hurts me even more. About yeilded no results after about 2 months of use & I bagged them.....
Any suggestions about volume would be GREAT!
L
ovrt makes me sick....
So is that what traffic acquisiting cost really is? No wonder their Net profits is only 10% of their net sales.
The figures are kind of misleading then.
Net sales of Overture SHOULD be equal to total amt earned from advertisers minus the amount paid to Overture's partners.
(and reset my price to them at .34 per click
Nice touch!
I can see all the PPC solution providers revisiting pricing models quickly. Shame we couldn't see the impact of the prices pre and post Auto Bidding tool, I think therein lies a few of the extra cents, along with suicide competitions, games of PPC chicken, click espionage and other stupid tactics designed to benefit the PPC provider and their partners and in no way benefit the advertiser.
Does this argument hold water?
Currently, $550 million is being included in the balance sheets of Overture and also Yahoo/MSN/others. Is this how accounting is done? I am no accounting guru - I am asking this question from layman's point of view. I wonder how many shareholders know what "traffic acquisition expenses" means.
Overture's 2003 balance sheet will read like that of an old economy company! Sales of $1 billion and profits of $70 million!
