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PPC Hyper-Inflation, what's your view?

by vok
4 replies
Is ad inventory becoming to expensive that the middle man can't make money at this game any more? I've personally seen large affiliates simply priced out of the main stream PPC ad networks such as Google Adwords are other large traffic brokers. I can only see this problem getting worse as demand is out stripping supply and driving PPC to the point that the risk vs. rewards ratio becomes so unbalanced it's just to risky to touch for the smaller guy.

What's your take on this?
#hyperinflation #ppc #view
  • Profile picture of the author Lee Wilson
    Things like this will always self balance. When cost bidding becomes too much, it get's balanced by smart bidding. A lot of marketers, including many large companies, aren't very good at thinking smart with things like PPC, so there will always be some headroom.

    The good thing about Google Adwords is they actually reward smart bidders so I think it will keep things on a reasonably level playing field, where the smaller marketer will always be able to compete, or at least for a long while yet.
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  • Profile picture of the author seobro
    Forget main tier keywords as those are so max expensive. I am going after the 3rd tier key phrases now. Well, the thing is those are easier to target using SEO - just saying. Personally, I do not spend as much on PPC now. I agree that max PPC price inflation is my reason.
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    • Profile picture of the author freedumb
      I predicted this in like '06. I wouldn't be surprised if it gets to the point that where you pretty much have to deal with a middle man to get ads on Google. Big business has caught on now and they want to make Adwords work like other advertising mediums (i.e. cable). And Google obviously doesn't care about providing good customer service to its advertisers so it seems like they would want to shift more into just dealing with large agencies...
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      • Profile picture of the author vok
        The problem is very worrying and I throught where we will be in another 5 years time, I think affiliate marketing could change very much and won't be a free for all cash grabber like it's been for most over the last 10 years. Affiliates may even be banned at some point from advertising in main stream ad networks, because they are the mostly tyhe cause of PPC hyper-inflation and it'll be solely left for merchants.

        I think the main problem is the vast volume of people this industry has grown to, there's simply not enough traffic and customers out their for everyone. Right now I don't know what the solution to the problem is.

        I've also been thinking what the future holds for SEO too?
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