Why ppc $ value would go down this time ?

stojanfl · Aug 23, 2006

Hi there,

Here is something I was thinking about . I read it in several threads here before that this time of the year the average click $ value goes down, since people don`t spend that much time on the internet , which means there is less traffic, less clicks ...etc. That is fine, but when I think about it there is less clicks, you would think that the demand for those clicks would not go down, right ? I mean it is a supply/demand situation, so I am thinking now the advertisers have to fight ( bid higher ) for those clicks even more then during the rest of the year ( unless they just do not need business during this time of the year ??!! ) which ultimately means they would have to pay more for their clicks not less ?
I would appreciate some thoughts on this from anybody here !

P.S. This thread is not against NameDrive, I just happened to park with them and thought I would ask this question here.

Thanks ,

stojan

DNjet · Aug 23, 2006

I understand your thinking on this, but advertisers appropriate their budgets more so during peak times and not slow times , which means less advertisers to drive the bids up, the more advertisers that there is , the more competition on the same keywords which drives the bids up, less advertisers creates lower ppc payouts, especially on the second and third positions for a particular keyword.

The supply and demand theory you are thinking is really the reverse , it costs less to get to the top because of less competition to get there.

denny007 · Aug 23, 2006

Advertisers has setup Max. bids and Max. amount to spend. So they pay same per click but spend less

stojanfl · Aug 23, 2006

Interesting, but I see where you are coming from. Well, hopefully beginning September we will see some increase.

Thanks for your comments guys !

stojan