17th
Here are five reasons why a pay-per-click advertising recession looms. (If you depend on Adsense for the bulk of your revenue, this applies to you as well.)
1) Clutter - Have you shopped for a car lately? I have. And I did a lot of Google searches in the process but largely ignored the ads. The reason - clutter. Take a look at this search. Ads are stacked on top of each other. There are 10 ads in my browser…
2) Declining Relevance of Traffic/Transition to Cost Per Action … Traffic is becoming irrelevant unless it results in action. There will be some pain as search engine marketing moves to a cost per action model, rather than one based on sometimes irrelevant clicks….
3) Rising Costs - According to a five-year Forrester interactive marketing forecast published last week, costs per keyword rose an average 33% each month in Q1 2007 compared with the same period in 2006. ….
4) Marketers Spread the Ball Around - Move over search, you’re not the only game in town. Marketers are increasingly investing in behavioral targeting, webisodes as well as more social channels like blogs and soc nets studies say…
5) Search Ads Are Viewed as Untrustworthy If there’s anything that Enron, Bill Bellichick, Marion Jones, Worldcom and Barry Bonds taught us, it’s this - trust is king. Google CEO Eric Schmidt knows this…. However, according to a study published by Nielsen last week, search engine advertising suffers from low trust.
