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.
Kenneth C. Wisnefski, online marketing expert and founder / CEO of WebiMax, announces how the evolution of the internet has changed the way merchants and consumers navigate the holiday season. Components including E-commerce, reputation management, reviews and social media have supported the online marketplace that acts to end the traditional shopping experience people have enjoyed for many years.
“If we simply focus on the 2010 statistics of ‘Cyber-Monday’ versus ‘Black-Friday’ (on-line versus in-store), we see that Cyber-Monday experienced 16 percent growth to just over $1 billion in online revenue, whereas Black-Friday revenue only experienced a small increase of 0.3 percent compared to 2009”, states Wisnefski. “The simple fact is that it is more convenient, consumers can read online reviews, and compare products and purchase from the comfort of their own home (not to mention they don’t have to deal with holiday crowds)”.
These figures are parallel to the success of small business start-ups entering the online advertising market. Wisnefski’s firm, WebiMax, founded in 2008, has flourished due to the heavy demand for search engine optimization, search engine marketing, E-commerce solutions, social media, pay per click management and more. The company’s revenue is up 400% year over year compared to 2010 and Wisnefski says “companies are investing more resources than ever before in to these online services.” He furthers “we represent many retailers that are conducting most of their holiday business online versus in-store”.
It is well-documented that investments in E-Commerce are on the rise as consumers move on-line to make their holiday purchases. In fact, comScore reported positive growth in E-Commerce spending for the last 8 consecutive quarters.
“The present-day consumer is more price-conscience and aware of competition amongst manufactures which are more reasons why demand is shifting heavy to on-line purchases versus in-store”, states Wisnefski. “There is a plethora of resources available to the on-line consumer including reviews and ratings, product comparisons and customizing options which ultimately leads to a more educated buying decision by the consumer”.
The fact that companies are investing more and more each year in to E-Commerce and illustrated by recent holiday revenue statistics, it is strongly believed that on-line revenue will outpace holiday in-store shopping over the next few years.
“I will close with this. Everyone loves A Christmas Story when Ralphie sees the BB gun in the store window. Nowadays, Ralphie would have found the BB gun online and his parents would be reading reviews about how many kids actually shot their eyes out with it”!, exclaims Wisnefski.