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Paying less for Pay Per Clicks can pay off

When it comes to selecting keywords on search engines, cheaper words perform better in search marketing, according to a new report released by DoubleClick’s search and affiliate marketing unit, Performics.

The report "Search Engine Marketing Considerations" was based on research undertaken in America but has some interesting insights into the Par Per Clicks market as a whole.

For example, more than 60 per cent of "active" keywords (keywords that have resulted in at least one click in the last month) cost 20 cents or less, whilst keywords that cost more than $1 account for only 6 per cent of those clicked on at least once a month.

What’s more, higher position doesn't necessarily mean greater click volume.

The report concluded that high click-volume keywords perform equally well both above and below the top three. In fact, lower-positioned keywords drive 10 per cent of total conversions.

Moreover, conversion rates tend to fall as Post Per Click prices exceed 50 cents.

The report was compiled from Performics' data of over 100 marketers for the first and second quarter of 2004.

DoubleClick also concluded that Pay Per Clicks marketing requires a combination of human expertise, robust technology, and constant attention - three qualities that are not always readily available to the average interactive shop or in-house marketing department.

Above all, marketers "better have the technology and better have a plan of attack," said Chris Henger, Performics' senior vice president of marketing and product development.

He added that most in-house marketers aren't capable of handling the process on their own, because of a lack of resources and sufficient technological sophistication.

Sources: DoubleClick, IAB, Performics

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