PPC costs on the rise!
Soaring profits found in search ads
LOS ANGELES — It’s no wonder Google’s profit shot up sevenfold this quarter: Prices are soaring for search ads — those simple text ads that appear next to Internet search results.
Advertisers pay each time someone clicks on an ad. Search ads used to be available for a nickel or dime per click. Now they’re costing more than $1, some even $40 or $50.
Google and rival Internet giant Yahoo dominate the $8 billion market for search ads, which are sold in an auction setting. So far this year, Google has reported revenue of more than $4 billion, almost all of it from the sale of advertising. “It’s a supply and demand marketplace,” says Gregg Stewart, senior vice president at search-marketing consultancy Fathom Online. “As more advertisers get involved, that drives prices up.”
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