make sure that your Pay-Per Click (PPC) advertising budget is not on the chopping block first.  PPC advertising is unique in that, when set up and maintained properly; it provides solid data about the ROI it generates.  The back end analytics and reporting systems available through Google AdWords allows you to see where your money is being spent and what truly works to provide your business with the highest ROI possible.  Why spend valuable marketing dollars on unproven advertising mediums when search engine marketing can be easily tracked and measured?

Due to the highly competitive nature of the Google AdWords, Yahoo! Search Marketing and Bing (Microsoft adCenter) marketplaces, developing and maintaining a strong and effective PPC campaign has become increasingly difficult for the average business owner.  Platforms and features are changing on a weekly basis. Since most are busy expanding their client base and servicing current customers, learning the proper way to build and manage an effective PPC campaign can be low on the priority list.  The Pay-Per-Click Advertising options for business owners are minimal: either hire an in-house online marketing employee or outsource to an expert.  As I am sure you are aware, the costs associated with hiring an employee are substantial and get higher and higher each year.  Between insurance benefits, 401k/IRA contributions, Social Security payments, taxes, salary PLUS your marketing budget – outsourcing your PPC advertising is likely the most cost-effective option. Furthermore, a qualified PPC Management company will ensure that your online advertising dollars are spent wisely.

JumpFly keeps up with the latest innovations and technological advances that the PPC industry provides.  JumpFly is an award winning PPC Management Company.  While they haven’t won quite as many awards as Taylor Swift did at the CMA’s last night, they are working on it! 

So now I ask you this question:  Why not put an industry expert to work for you to see what they can do to increase your ROI and bring qualified traffic to your site?

The National Retail Federation (NRF), the industry’s largest trade group, still estimates that total holiday sales will grow 2.2% this year, which may prove optimistic and would still represent the weakest gain in six years. However, several other retail experts expect a worse performance, and are even forecasting the first-ever decline in overall retail sales. Since online sales are down, I personally fear overall sales will follow suit this holiday season. Here at JumpFly, we are hearing clients citing economic concerns with increasing regularity.

Following a strong week for online sales after Cyber Monday, driven by large discounts on consumer electronics products, comScore said sales slowed significantly in recent weeks. The softest categories included music, movies and videos (down 24%); office supplies (down 19%); jewelry and watches (down 17%); and home, garden and furniture (down 16%). Some bright spots included sport and fitness (up 31%); books and magazines (up 18%); and video games, consoles and accessories (up 17%).

A recent NPD survey conducted earlier in December indicated that 31% of consumers said they were concerned about their job security and had cut back on their spending. Fear is a powerful motivation to curb spending, as witnessed by this year’s dismal holiday sales season. Let’s hope that 2009 brings better times for our struggling economy.

Happy Holidays to all. May 2009 bring you all great health, wealth & happiness.

More About Brad

About JumpFly:

JumpFly professionally develops, implements and manages Google AdWords, Yahoo! Search Marketing and Microsoft adCenter Pay Per Click (PPC) Advertising accounts, JumpFly is a Google AdWords Qualified Company, Yahoo! Search Marketing Ambassador and Microsoft adExcellence Member. JumpFly was recently named the #1 PPC Company in the country by TopSEOs.com.

According to regulatory filings, Billionaire investor Carl Icahn increased his position in Yahoo by 6.78 million shares between November 24-26 (at about $10 per share), raising his total to 75.58 million shares (about 5.5% of the company). I saw a recent presentation he made where he stated that he continues to believe Yahoo shares are undervalued, but admits that he also thought they were undervalued when he was last purchasing shares near $25 per share. So far, he is down about $1 billion on his investment. Ouch! He is still looking for some type of partnership with Microsoft on their search efforts which he believes could help save Yahoo a great deal of money. While there are no alleged talks going on at this time, I suspect these two will eventually work out some type of agreement. With Yang stepping down and both Icahn and Microsoft’s Steve Ballmer expressing interest in a search deal getting done, I think something will eventually develop. I would also like to mention that I very much hope that Carl Icahn is a better investor than speaker because quite honestly, listening to him speak was a little painful. Sorry Carl, but it’s the truth.

Black Friday & Cyber Monday Both Posted Impressive Increases Year Over Year

Sales during Black Friday, the day after Thanksgiving, saw an increase of 3% over the prior year. Last year’s sales of $10.3 billion on Black Friday increased to $10.6 billion spent this year. Though this gain appears promising for the economy, many fear that the increase in sales was at the expense of profitability. And though spending was up on this day, it may still be down for the Holiday season. One Gallup Inc. poll suggests that spending on gifts will be down 29% from a year earlier. We’ll soon know for sure.  

Online shopping saw a more dramatic increase in sales. According to data released by ComScore Inc., online sales for Cyber Monday, the Internet’s equivalent to Black Friday, jumped 15% from a year ago as Internet sites lured millions of consumers with offers of free shipping and dramatically reduced prices. Online sales increased from $733 million on Cyber Monday in 2007 to $846 million this year. Forrester Research expects 12% year-over-year growth for online holiday sales, or $44 billion in this November and December.

The US Economy Searches For Stability 

The US Economy continues to look a bit frightening and unstable. However, some good things are also taking shape. Gasoline prices are the lowest they have been in years, with prices at about $1.70 per gallon here in Illinois. That’s a far cry from the $4+ getting charged just 6 months ago. Additionally, mortgage rates are dropping and refinancing is rapidly picking up, enabling homeowners to lock in lower rates and lower monthly payments. Though we are clearly not out of the woods yet, there does seem to be shared hope that the economy will stabilize and business will pick up by the end of 2009. I suspect it’s going to be an interesting year.

More about Brad

Perhaps in the short-term, according to Merriman Curhan Ford analyst Richard Fetyko. Yesterday, Fetyko issued a release via Barrons stating, “Based on our checks, the decline in consumer and business purchasing is having a dampening effect on search-engine marketing (SEM) — keyword prices are down 5%-30% from the third-quarter of 2008, traffic to ecommerce sites is also down year-over-year and quarter-over-quarter, and click-through-rates on ad listings are declining as well. SEM is expected to be among the last places to see cuts, and we are there now. Advertisers are adjusting their keyword buys to protect their margins and returns on investment, which are under pressure as sales-conversion rates and average order value dropped, based on our checks. Google’s paid-click volume is also under pressure. Since consumers and businesses have reined in their spending, they are searching for fewer commercial items and are clicking on fewer ads (click-through rates dropped), which translates into slower growth in paid-clicks volume (key revenue driver). Weakness has also spread overseas. Domestic growth has decelerated in 2008, and we expect international regions to slow in the fourth-quarter of 2008 and 2009 as well. U.K. ad revenue was flat for the last three quarters, and the rest of Europe and Asia are seeing cutbacks in ad budgets as well.”

Not surprisingly, various research agencies are reducing their projections for online advertising growth going forward. Just last week, marketing research firm eMarketer reduced estimates for U.S. Internet advertising to $25.7 billion for next year, about $2.7 billion less than a forecast from just three months ago, but still a 9% increase over this year. EMarketer predicts U.S. search ads will generate $12.3 billion next year and that “display ads” will rise nearly 7% next year to $4.9 billion (less than the 14% growth previously suggested). Considering we’re in the midst of the worst financial crisis since the 1930s, I would say that any growth at all is pretty good! The reason for continued growth in PPC advertising despite this crisis is because it works.

While “decelerating growth” may be a sobering reality for Google, it will not bring them to their knees. In the near term, Google may have to make some adjustments, but they appear incredibly well positioned to potentially dominate multiple marketplaces going forward, including organic search, sponsored search advertising, online video & the wireless market. Organic search, PPC advertising and online video (via YouTube) are already in the bag, at least for now, and Google’s wireless Android platform is new but already creating a lot of buzz. Actually, I personally think that what Google has already accomplished is amazing and I look forward to witnessing their future innovations. They always seem to be one step ahead of the competition.

Holiday Reminder- The busiest shopping day of the year, Black Friday (this Friday) is followed by the biggest online shopping day of the year, Cyber Monday (next Monday). Happy Thanksgiving.

More about Brad

In a word, the PPC industry continues to look healthy.

After the closing bell today, Google, Inc. reported their most recent quarter’s earnings, including an impressive profit increase of 26% compared to the same quarter last year. This is pretty impressive growth, especially considering just about every other company seems to be slowing down.

Google Chief Executive Eric Schmidt said that the company experienced “revenue growth across all of our major geographies thanks to the underlying strength of our core search and ads business.” 
Google officially started generating more than half of its revenue from international markets. 
 
In regards to their paid click revenue, Google said Thursday that the number of paid clicks rose 4% from the previous quarter, and 18% compared with the same period a year earlier. Though the economy is hurting, people continue to search the web and click sponsored results with increasing regularity.

Google continues to grow its workforce, adding another 519 people during the quarter, though this is down from an increase of 2,130 employees at the same time last year. The company now has 20,123 employees.
We’ll see what Yahoo! has to say when they announce their quarterly earnings early next week.

More about Brad

View more Google News articles from JumpFly

The widely followed Dow Jones Industrials slid another 508 points yesterday, closing at 9,447. Yikes, 19 more days like that and the stock market will be gone! For the sake of our economy and everyone in this country, things will improve, and the sooner the better. I fear the potential fall-out from what has already happened in the stock market is just beginning to be realized and further far-reaching consequences are likely to develop. Already, the financial crisis here at home has spread overseas as international banks and markets are now in a state of crisis as well. In fact, global markets lost $8.1 trillion in value over the past 3 months. Based on these unsettling facts, the question for today is, how will this financial crisis impact Internet marketing, and more specifically pay-per-click (PPC) advertising? For the sake of this article, I’m going to assume the stock market does not remain on its current path to zero. If it does, we’ll all have much more serious things to worry about than Internet advertising.

Per a previous PPC advertising news review I wrote back in July, the PPC Economy still appears stable, at least for now. Recent surveys suggest that U.S. online advertising is still slated to grow 22.7% in 2008, though this is less than the 32.7% growth previously anticipated. I also referenced Henry Blodget, co-founder of Silicon Alley Insider and someone whose opinion I greatly respect. He stated that, “new or developing media–those that still are growing more quickly than advertising expenditures as a whole–exhibit fewer recessionary effects than traditional media. More specifically, advertising spending on “new media” does not decline before, during, or after recessions, it simply grows less quickly than during normal years. This trend was clearly visible in the growth of television advertising during the recessions of the 1950s and 1960s, and in the growth of cable advertising during the 1990s.” In fact, Hal Varian, Google’s chief economist, agreed, telling analysts that, “During periods of slow economic growth, the last thing an advertiser wants to cut is spending on search-based advertising.”

However, right now, no companies seem to be safe. Just this week, Internet giant eBay  shed 10% of its workforce, meaning 1,600 more people are now seeking employment. They’re far from alone as job loss continues at an alarming rate. Earlier this month, the U.S. Labor Department reported the economy lost another 159,000 jobs in September, far more than the 100,000 lost jobs economists were expecting. The economy has now lost 760,000 jobs since January. These numbers cast a harsh reality on the tragic state of our economy.

To examine if PPC advertising is suffering, let’s take a closer look at Google’s last quarterly earnings release. Google earns the vast majority of their revenue from their Google AdWords search-marketing program:

Google reported revenues of $5.37 billion for the last quarter, an increase of 39% compared to the same quarter a year earlier. This indicates that advertisers are still willing to shell out money to Google, though at a slower growth rate than the year prior.

Here at JumpFly, where all we do is setup and manage PPC accounts, we have fortunately not yet witnessed any recognizable slow down in new or existing clients as a result of current economic conditions. From our eyes, it appears that the search engine marketing industry remains strong – increasingly competitive, but strong. As I watch the economy crumbling around me, I occasionally ponder the demise of PPC advertising, but I just don’t think it’s going to happen. PPC advertising is an incredibly powerful, proven and cost-effective medium for reaching targeted customers. Advertisers still need to reach their targeted audience and there is likely no more cost effective way to do so. 

Learn more about Brad

Aggressively Market Overseas if Applicable:

Everything in America is cheap overseas. One benefit of the weakening U.S dollar is that it causes international prices of U.S. products to drop, allowing others around the world to purchase our products at a reduced price. Hey U.S. manufacturers, you guys are particularly well positioned to take advantage of this unique opportunity. If you are not marketing overseas, now is the time to start, and PPC advertising represents an incredibly powerful platform to reach international customers. Furthermore, international online users represent a significant and growing number of potential customers. Per Patrick’s recent blog, it may be wise to start by using Google AdWords in the European market.

Create New Targeted Ads:

Appeal to the public’s increased sense of urgency to save money. Offer a possible solution or consider ads focusing on new lower prices or special incentives. For example, a car dealer might want to create ads that focus on their hybrid cars that provide better fuel efficiency or a DVD rental business may mention the value of saving fuel and watching videos from home. Use your ads to make the most of a bad situation and call attention to the fact that you are doing something to help, like reducing prices or offering free shipping.

Shift Advertising Budget to Mediums that Can be Tracked:

Now is a great time to ditch costly and difficult to measure traditional advertising mediums in order to increase advertising where results can be measured, like PPC advertising, where advertisers can control their budget and track conversions. Many businesses are already headed down this path as TV and newspaper ad spending in the U.S. has been declining since 2005 while online advertising continues to rise.

Consider Professional Assistance:

Now, more than ever, it is critical to maximize advertising results. The only way to determine if you are properly managing your PPC campaigns is to let the professionals take a look. At JumpFly, a free analysis & consultation are readily available, and results are guaranteed. Letting the pros take a look at your PPC campaigns will likely yield some startling findings.

Now is NOT the time to turn off online advertising! In fact, various sources reveal that companies that increased marketing efforts during a recession realized dramatic long-term benefits. Additionally, rising fuel and food costs will likely translate into increasingly cost-conscious consumers searching for deals more frequently online.  

Survive today & thrive tomorrow.

CURRENT ECONOMY:

Let’s review some unsettling economic facts:

• Last week, the U.S. Bureau of Labor Statistics reported a net loss of 62,000 payroll jobs in June, marking the 6th straight month of job shrinkage.
• Payroll employment has fallen by 438,000 jobs year-to-date, and there were an estimated 8.5 million jobless workers seeking employment last month, compared with 7 million a year ago.
• The stock market is off by 17% this year, the worst performance since 1970.
• Fuel costs $4+ per gallon, representing a nearly 100% increase in 3 years.
• Housing values are down across the country with U.S foreclosure increasing 53% year over year and bank repossessions nearly tripling.
• The value of the dollar continues to deteriorate for the 6th straight year, losing roughly half of its purchasing power compared to major trading partners.

This certainly does not appear good on the surface, and that’s because it isn’t. Many economists speculate that things will start to improve in 2009. I and countless others hope they are correct. Though times may be getting tougher, we are fortunately nowhere near the levels of “The Great Depression” where in 1933 unemployment reached over 23%, compared to 5.5% today. Furthermore, the stock market plummeted more than 75% at that time and banks were going out of business and uninsured… Not Good!

Fortunately, the PPC Economy appears a bit more stable, at least for now. There is no doubt that business owners are going to be taking a closer look at their advertising budgets, but despite the slowing economy, people are still searching the Web with increasing regularity, providing a valuable and expanding marketplace for PPC advertisers. Based on JumpFly’s client base of 300+ PPC advertisers, there was no indication of an overall slowdown in PPC Advertising spending over the past 6 months. There have been an increasing number of clients expressing concern about the economy, but actual PPC spending has not been reduced. In fact, U.S. online advertising is poised to grow 22.7% in 2008, though this is less than the 32.7% growth previously anticipated. Furthermore, an economic downturn may even prove to offer some unique PPC Advertising opportunities, which I will visit in next week’s blog.

Per Henry Blodget, co-founder of Silicon Alley Insider and someone whose opinion I greatly respect, “New or developing media–those that still are growing more quickly than advertising expenditures as a whole–exhibit fewer recessionary effects than traditional media. More specifically, advertising spending on “new media” does not decline before, during, or after recessions, it simply grows less quickly than during normal years. This trend was clearly visible in the growth of television advertising during the recessions of the 1950s and 1960s, and in the growth of cable advertising during the 1990s.”

GOOGLE SHOWS SEARCH VOLUME DATA

PPC Advertisers everywhere will be delighted to find that Google AdWords now includes actual search volume numbers at their Keyword Tool. Accurate search query data is now included, instead of the vague graphic bar that was previously used to indicate search volume. Thanks Google! We appreciate it. This makes the Google AdWords Keyword Tool an even more valuable resource for keyword research and discovery.