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Q: Pay Per Click Advertising ( Answered,   4 Comments )
Question  
Subject: Pay Per Click Advertising
Category: Computers > Internet
Asked by: seeking_knowledge-ga
List Price: $30.00
Posted: 26 Feb 2003 08:42 PST
Expires: 28 Mar 2003 08:42 PST
Question ID: 167370
I am trying to understand the pay per click model and the competitive
landscape.  I would like to understand how Overture stacks up against
the other players, specifically the entree of Google's Adwords.  In
particular, I want to understand changes in competitive pressures on
traffic acquisition costs, and how to understand how acquisitions of
Alta Vista and FAST may help or hurt Overture and if the market is
morphing from the paid listing market to a more sophisticated world.

I am not looking for Wall Street research, but a view from an actual
user or industry person about how to think about this. Also, I am
doing other research on the Internet, so I would be happy to ask
more questions if I found somebody knowledgable.

Clarification of Question by seeking_knowledge-ga on 26 Feb 2003 10:52 PST
Numbers would be good but I am really looking for a sense of change -

Request for Question Clarification by easterangel-ga on 01 Mar 2003 22:29 PST
HI! I am not an expert of the pay per click business model. But as a
researcher I could help in finding articles by experts about this
topic. If you subscribe to this suggestion, I will immediately get to
work on your question. Just let me know. :)

Clarification of Question by seeking_knowledge-ga on 03 Mar 2003 06:24 PST
EasterAngel - this is my first time using google answers so bear with
me.  I don't know if martinjay is working on the search already.  If
he/she isn't, then it would be fine with me for you to find articles
that would answer my questions.  In terms of articles, I would hope
that they would be very detailed.  I have already trolled the web and
found the recent articles to the Alta Vista and FAST acquisitions so I
am looking for something more than just a "reaction" piece. Thanks

Request for Question Clarification by easterangel-ga on 03 Mar 2003 07:44 PST
I will try to find the articles you want. In the meantime I will keep
this questions opened so other researchers maybe able to take a crack
at your question. Thanks.
Answer  
Subject: Re: Pay Per Click Advertising
Answered By: leader-ga on 14 Mar 2003 08:03 PST
 
Hello Seeking-knowledge-ga:

Your question is definitely of great interest. As it is a research
based question and answers to such questions have no limits, allow me
to discuss the effect of paid search queries on the traditional search
listings and vice versa. I will state some relevant issues related to
your research to let you have an idea what can you expect from my
provided resources and than point out to those resources that can help
you precisely what you are looking for. Please pay special attention
to the useful terms that can help you find more resources.

OVERTURE SPONSORED LISTINGS IN SPOTLIGHT

The three top listings in Overture are also listed in many of the
other search engines such as Altavista, Yahoo, MSN and Intokmi. A
Ore.-based Commercial Alert, claimed last year that sponsored ads in
these websites are misleading to the customer as they are depicted as
sponsored listings and featured ads instead of letting the searchers
know that these are just ads like any other ad and an ‘ad’ may not be
what searchers are looking for. For example, an ad in these listings
can just be like any other ad in the newspaper which might point the
customer to a website selling baseball bats even if the searcher is
looking for a baseball history. Ore.-based Commercial Alert states
that the websites must let the searchers know that it is an ad and not
mislead them to think that these are sponsored listings of the same
type as the search engine listings. Google clearly advertise its
Google adword campaign as an ‘AD’. More websites have taken steps to
solve this issue by providing a more clear definition of the sponsored
listings but there is still a long way to go.

The discussion makes us think what will happen to overture overall
structure if the major search engines opt not to show the listings and
even if the major search engines are willing to do so as they drive a
part of their revenue from the overture listings.
Relevant Discussions: 
http://news.com.com/2100-1023-954171.html
http://searchenginewatch.com/sereport/02/07-ftc.html
http://searchenginewatch.com/sereport/01/07-ftc.html

OVERTURE AND GOOGLE ADWORDS…WHO MAY USE?

Since, Google adwords is the first of its kind of ads that require
advertisers to pay for the top placement, it will be useful to know
why would anyone use Google adwords instead of using Overture and who
will prefer Overture? Although anyone can bid on Google adwords from
$0.5 to $50 but it is evident that the prices of keyword advertising
is much more than the listings of the same keywords in Overture. It
can easily be concluded that smaller companies and individuals who
don’t have enough capital will still prefer Overture over Google
adwords as the cost of ads on Google is high. On the other hand large
and medium size companies that have the resources might opt for Google
adwords.becaus Moreover an ad in Google adword is visible to more
potential customers than Overture which provides an incentive to
individuals and companies who don’t want to waste time on getting a
top placement in Google through traditional methods for putting their
ads on Google adwords to be more visible.


SEARCH ENGINES AND PAID FOR PLACEMENT LISTINGS
Summary from http://www.searchenginewatch.com editorials:
More can be found at
http://www.searchenginewatch.com/resources/paid-listings.html
Search engines need to be like newspapers and have a clear delineation
between editorial content and advertising, this column says. It sounds
great, and there are indeed real concerns. But unlike media outlets,
search engines also have a middle area of how they build listings that
isn't quite editorial nor advertising.
Is Google doing something wrong by failing to index every page on the
web, when it is well-known that there are manufactured pages numbering
in the millions designed to do nothing more that get free advertising
for some companies? Is Yahoo wrong not to review every submission it
receives for free and response with a guaranteed yes or no, when the
sheer number of spam submissions would simply swamp it?
Putting up paid barriers can help search engines as much as hurt them.
There is a real fear of a slippery slope, but it is naive to think
that there is some type of "level playing" field out there that would
exist without paid participation programs.
Also, the column suggests that charging a listing fee is something
that Yahoo has just begun to do. The company has actually offered it
since early 1999, in response to demand from webmasters. It was made
mandatory for commercial categories in back at the end of 2000.

Relevant Topics:
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/06/18/BU107908.DTL
http://www.sfgate.com/cgi-bin/article.cgi?file=/gate/archive/2002/01/28/srcheng.DTL
http://www.searchenginewatch.com/sereport/01/10-free.html

USEFULL RESOURCES
http://www.searchengines.com/pay_per_click.html
http://www.searchengineguide.com/searchenginenews.html
http://www.payperclickanalyst.com/pay-per-click-news.htm
http://www.traffick.com/
http://www.searchenginewatch.com/resources/paid-listings.html
http://www.payperclicksearchengines.com/search-engine-tips.shtml
http://www.pandia.com/


ARTICLES:
http://www.pandia.com/sw-2003/06-ppc.html
http://www.payperclickanalyst.com/article-ryan-kalt-001.htm
http://realtytimes.com/rtnews/rtapages/20020828_payperclick.htm
http://www.pole-position-web.com/newsletter/007-pay-per-click-inclusion.htm
http://australia.internet.com/r/article/jsp/sid/11605
http://realtimes.lycos.com/renews/20020828_payperclick.htm



Useful Search Terms:

Pay per click vs traditional search engines
Pay per click comparison
Paid listings AND “comparison”

Search Terms:

Search Engine studies
Search engines
Pay per click search engine

Hope this will help you. If not, please clarify and I will work with
you on this interesting issue. Thanks.

Sincerely,
Leader-ga
Comments  
Subject: Re: Pay Per Click Advertising
From: martinjay-ga on 26 Feb 2003 10:24 PST
 
Might want to add some of your assumptions.  I have a
deal that is 1.5 years old that the numbers have changed
significantly, but I could never get good data for.
Subject: Re: Pay Per Click Advertising
From: was-ga on 28 Feb 2003 19:02 PST
 
I run a number of websites.  We use many different methods. One being
pay per click.  We have found that Overture is consistantly one of the
best as far as ROI.  Our sales percentage from the click thrus are
substainially better on Overture than on Google.  Yet I recommend
using Google also.  There are some links to articles that I am trying
to find that back this up.
Keep in mind that just being in Overtures listings is not enough. 
Your position within the Overture listings is also important.  Google
has made a dent in Overtures pay per click model, but Overture
continues to deliver better performance. As long as Overture can
continue to deliver it's paid listing to a large number of web search
engines it will continue to be very effective. Also, as long as paid
listings continue to be put on the top and in front of normal search
engine listing the pay per click model will work.  This is because
most people do not go past the first 3 page of listings, and often
they do not realize that they are clicking on a paid listing. If you
need more specifics please let me know.  This is 90% of what I do to
make money.
Subject: Re: Pay Per Click Advertising
From: martinjay-ga on 01 Mar 2003 18:14 PST
 
I have a question for Was-GA.
What is the rate for click thrus
on non-sorted mass HTML emailing
and also what CPM rates could someone
get for a non-targeted newsletter HTML
email - or where could I find information
this detailed out?  Thanks if you get this.
Subject: Re: Pay Per Click Advertising
From: martinjay-ga on 03 Mar 2003 06:40 PST
 
I am not a researcher, so I am not working on this,
was just asking for info if it is found by whoever
is doing this.  Thanks, sorry for the confusion.

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