I found this very interesting comment in one of Robert Scoble's posts today. Mark, a small business owner, says after nearly seven years of buying Google keywords for advertising, he is thinking of moving back to traditional newspaper advertising because "its becoming more costly to convert adword enquiries."
"I did a test last week in a local paper and pound for pound I got a better return through the paper!!! Never thought I would say that," he says in his comment.
Mark has a more detailed post here about how his cost per click has doubled in the last 12 months. He says his rate of conversion of inquiries through adwords has also gone down during the same period.
This is interesting because it could signal a coming slowdown for Google if its Adwords program is not as effective as it used to be. I wonder what this means for newspapers and if they can be quick and smart enough to turn this situation, if it is true on a wider scale, to their advantage.
(Warning: The content in Mark's other posts is a little shady.)
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