Several different marketing agencies are claiming the price of branded cost-per-click Google AdWords has ballooned by as much as 141% in the last four to eight weeks, causing speculation to swirl throughout the industry. And as Google over-promotes brands across a wider array of search queries, Google can increase the AdWords click costs on branded keywords for brands which want to protect their brand terms: It is a low-risk move for Google since users already have an affinity for the associated brands. So long as Google can monetize the brand-related queries, it doesn't hurt Google to over-represent brands on other search queries. Those brand-bids arbitrage existing brand equity and people using last click attribution under-credit other media buys.īrands have brand equity to protect, which Google can monetize. They've also ramped up brand-related bid prices in search ( RKG pegged the YoY shift at 39% higher & QoQ at 10% higher). And as Google has seen their revenue growth rate slow, they've slowed hiring and scrubbed an increasing share of publisher ad clicks to try to shift more advertiser budget onto and.
Google is still growing quickly in emerging markets, but they can't monetize those markets well due to under-developed ad ecosystems. But the cost of keeping sites secured goes up over time & the cost of building something to a profitable scale keeps increasing.
Hosting is dirt cheap and Wordpress is a powerful CMS which is free. The problem with that view is the barrier to entry may rise faster than technology progresses leading to fewer business opportunities as markets consolidate and business dynamism slows down. If one is an optimist about techno-utopia, it is easy to argue there has never been a better time to start something, as the web keeps getting more powerful and complex.
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