According to a new report by Group M entitled the Financial Implications of The Yahoo-Microsoft Search Alliance“, says that prices of PPC advertising are going to go up.
Way up, thanks to the Bing-Yahoo deal.
GroupM, is the search marketing specialist division of WPP “which is responsible for more than 1/3 of the world’s media buying”.
In the short term, GroupM thinks cost-per-clicks for branded keywords could go 78% higher than current Bing pricing, and unbranded could go 64% higher following the merger.
According to the report, after the holiday season and once the merger kicks in after the new year, prices will come down but still be higher than present levels.
For the beginning of 2011, Group M predicts 13% higher for unbranded and 23% higher for branded keywords over current Bing.com pricing.
They figured out another way to shave.
Their earnings go up, ours goes down.
Nothing new really.
(Hope I’m wrong)
Yes, how much are we gonna get of that.
We are last in line to get the well water.
Steve
Come on its a pretty easy formula.
The upstream partners takes 20% off the top for administrative fees, the parking companies take 20%-50% of what’s left depending on your deal, then you get the rest after “smart pricing” or quality score which leaves you around .0000004% of what the advertiser pays
I expect to see none of that.
Hollow reassurances from the parking industry players and the lack of love from Google and Yahoo have left me with a clear vision of the future.
From what I have heard Microsoft can’t stand the parking industry either. I hope that is not true, but I won’t hold my breath.
Steve
Come on its a pretty easy formula.
The upstream partners takes 20% off the top for administrative fees, the parking companies take 20%-50% of what’s left depending on your deal, then you get the rest after “smart pricing” or quality score which leaves you around .0000004% of what the advertiser pays
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Yup this is about right … its ” really smart pricing “.
Create a CMS with templates for different categories. License a white label from these guys (buy sell ads .com) Call Demand Media about providing content and for certain domain names offer shopping via drop shipping. Get everyone together for a shot of ouzo and come up with other ways to monetize and take the power away from adsense type sites. Most of this is not my idea but if anyone wants to talk about it I’m open. Is it really that difficult considering the unbelievable abilities that many have to make something like this come to fruition?
Hmmm…Bing prices go up, but I wonder where that leaves them compared to the old Yahoo prices? Could they actually be down from there?
I suppose if your site has enough traffic you could refuse to display ad blocks and go direct to advertisers. Otherwise you take what you can get…
Create a CMS with templates for different categories. License a white label from these guys (buy sell ads .com) Call Demand Media about providing content and for certain domain names offer shopping via drop shipping. Get everyone together for a shot of ouzo and come up with other ways to monetize and take the power away from adsense type sites. Most of this is not my idea but if anyone wants to talk about it I’m open. Is it really that difficult considering the unbelievable abilities that many have to make something like this come to fruition?
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Idiots Guide To Not Sucking At The Internet:
By LS Morgan
* Learn Joomla
* Learn Basic SEO
* Partner with a decent developer (protip: Romania gets you the most bang for your buck, as far as developers who have both hemispheres of their brains working. Technical ability *and* creativity is required unless you want your sites to be banal, run of the mill sh*t with refried library code)
* Screw Demand Media, source your own content
* Learn to work the affiliate game
* Be patient, put in lots of work with little return in the beginning
* Market the hell out of your properties via social networking
* Do something novel
* Continue to generate content
* Continue to market your social networking web
* Let your properties soak for a long, long time
* Build Rank
* Attain relevance
* Bootstrap back into your web properties to make them better or enrich your user/customer experience
* Profit
It really isn’t that hard- it’s dead simple. The only thing easier is registering a domain name and hoping someone wanders by to give you a lot of money for it. A fantastic model up until about 2004 or so. Today? There are better ways. Of course, some people would rather have free nickles than work for dollars, so whatever. Good luck to them.
Morgan
Can you refer somebody that you have work with in Romania?A developer?
Hey Rich.
I’ve spent years- and a few borderline aneurysms along the way- developing my resource network, navigating subpar talent and wading through the bids of ‘offshoring teams’ in India who were nothing more than 16 year old kids. My coders aren’t something I really give away willy-nilly. It’s kinda like asking a treasure diver to share his maps- perfectly understandable to ask, perfectly understandable why he can’t be of help.
With that said, you can go to places like eLance, etc, pay careful attention to the feedback, avoid new users with no feedback, etc. If there’s one thing I’ve learned in this journey, ‘you get what you pay for’ is standard, in the project management game. Super talented low bidders don’t stay on the market very long and are absorbed into full time work very quickly. What’s left is the dross- they know how to execute code and develop processes to broad spec but cannot execute a vision, the latter being all that really matters.
I’ve never had bad luck sourcing from Romania. Ever. They put in bids that are competitive with the Asians, yet seem to bring a spark of ingenuity to the table that is hard to find otherwise in that price range- and I’m not speaking from isolated anecdotes, either. I have yet to find creative talent in India under $20 an hour (but unlimited garbage at $5), yet I regularly find it in Romania around $8-$10.
I generally stick to Europe as I’ve found European coders offer the creativity and aesthetic comprehension I demand in my projects. Unfortunately, Western European coders are very, very pricey, so Eastern Europe seems to be taking up the slack. In Romania, you get damn-near Italians for the price of Indians.
The Group M analysis sounds good on paper.
But, Google will force those proposed increases
to be tapered.
With the merger of advertising programs,
Bing/Yahoo will need to show an increase in
revenue which will come about by lowering the
cpc.
The writing has been on the wall for a while for
the ppc category.
That is why we are seeing Trafficz planning
to promote Aftermarket.
Instead of Namemedia pushing smartnames, they
are pushing buydomains brokerage.
We are hearing less and less from DomainSponsor.
They realized the future profit center will
have to come from Snapnames.
That is why they are pushing hard the different
domain meeting auctions.
And, Parked was promoting their program everywhere.
Now, they are just harvesting what they can.
I would like to believe the Bing/Yahoo revenue
would trickle down to us.
However, logic says different.