Lately, we’ve been covering pay per click and paid search topics as reports illustrate the surge in demand for these advertising services. Amongst the data that have recently been published, new data released today by ZenithOptimedia (advertising and communications firm), states Google owns 44 percent of the global advertising market. That number represents a 10 percent increase over the past 5 years. Not only does Google own the majority of this market, the industry titan also accounts for 85 percent of all searches.
With Google’s dominating presence in these key areas, it is important for marketers, advertisers, and search marketers to accept their guidelines and play by their rules. Google has made excellent strides forward this year with cracking down on unscrupulous search firms utilizing black-hat optimization methods. Although there is no such thing (yet) as black-hat paid search, as a marketer looking for a PPC company, it is vital to contract with a Certified Google AdWords Partner. These companies demonstrate the understanding and expertise of how to properly leverage and design paid search for their clients.
Online ad expenditures are expected to continue to climb over the next 4 years, as models end at 2016. A recent analysis by WebiMax founder and CEO Ken Wisnefski states that there is a lot of cash sitting on the sidelines right now illustrated by the dramatic upsurge in Thanksgiving holiday expenditures. Although advertisers are being cautious right not, including those in Europe who are presently dealing with debt-ceiling uncertainty, one thing is clear; Paid search is booming and Google is leading the industry with second-place (Microsoft, 4 percent) far behind.
Paid search has more or less taken over as one of the leading forms of advertising on the internet. Traditional techniques including mass-media (newspaper, television, radio, etc.) have been suffering over the past couple years as challenging economic times have caused advertisers and marketers to be cautious and even abandon their marketing initiatives. A recent report by the Newspaper Association of America projects newspapers will achieve a new low in advertising sales in 2011. The Association expects ad revenue to be $24 billion, almost 50 percent less than its peak of $49 billion in 2005. While this sharp decline in newspaper advertising certainly includes concerns over the economy, at the same time, cost-efficient advertising including paid search has been surging.
Paid search includes the implementation of pay per click services to create targeted ads on search engines including Google, Yahoo! and Bing. While PPC is still a relatively new concept to marketers, its results thus far are astounding. Google release their Q3 earnings report in October and posted a $10 billion increase in revenue, 23% of which is due to a surge in paid search revenue. While this is a small piece of the puzzle, truth is research indicates paid search is expected to continue its upward trend thru 2016 (*important note models end at 2016).
As paid search becomes the new era of advertising, marketers should pay attention to the reputation of PPC companies. Ensure your PPC firm is a Certified Google AdWords Partner. Also, make sure the firm has a reputable list of clients and has demonstrated their expertise in the field.
Google announced last week that they are changing the position that ads will show on their search engine. Ads that use to appear above search results have been moved lateral to the right side and some will be moved to the bottom of the page, below search results. The company has been making changes to the appearance of their search engine for quite a while now as they announced last Spring that important layout and design changes will be taking effect.
Google stated they felt displaying the ads below search results provides a more consistent viewing experience on their search engine. They have provided a useful tool Top versus Side that will help evaluate the performance of ads placed at the top versus the side (and bottom) of search results.